Stricter filing rules limit number of M&A lawsuit venues

Litigation challenging merger and acquisition activity is being filed in fewer courts, says a report released Wednesday.

A recent Delaware ruling provides that firms domiciled in the state, which account for more than half of publicly held companies nationwide, may include a requirement in their bylaws that derivative litigation be filed in a particular jurisdiction.

Although 93% of M&A deals valued at more than $100 million were litigated, virtually unchanged from 94% in 2013, 60% of 2014 deals were filed in only one jurisdiction, according to “Shareholder Litigation Involving Acquisitions of Public Companies, Review of 2014 M&A Litigation,” issued by Boston-based Cornerstone Research Inc.

Last year's Cornerstone report said that in 2013, 62% of the deals were litigated in more than one court, with the biggest percentage, 54%, filed in two courts.

Plaintiff attorneys filed 608 lawsuits challenging M&A deals announced in 2014 and valued at more than $100 million, virtually unchanged from 612 in 2013, according to Cornerstone.