Remaining Claims Against Elliott Settled in Metrologic Case
After the New Jersey Appellate Division reinstated plaintiff’s claims against Elliott Associates and Elliott International, L.P., and the continuation of the litigation, including preparing for trial on these remaining claims, the parties entered into a mediation before the New Jersey court and separate settlement discussions. As a result of these discussions, after more than eleven years of hard-fought litigation, the parties entered a settlement for the remainder of the litigation for an additional $9,750,000 for the benefit of those former Metrologic shareholders who surrendered their shares in the 2006 merger. Wolf Popper partner Carl Stine, who, with co-counsel, represented plaintiffs in the case commented: “This is a great result for the former Metrologic shareholders. Together with the previous partial settlement, the litigation resulted in a benefit of more than $21 million.” The court approved the settlement in April 2018.
New Jersey Appellate Court Reinstates Claims Against Elliott in Metrologic Case
By decision dated February 10, 2017, the Superior Court of New Jersey, Appellate Division, reversed the lower court’s grant of summary judgment in In re Metrologic Instruments, Inc. Shareholders Litigation, reinstating claims against Elliott Associates and Elliott International, L.P. Contrary to the lower court’s decision, the Appellate Division agreed with plaintiffs that there are triable issues of fact as to whether Elliott was part of a group that controlled the transaction at issue, the 2006 cash-out of the company’s public shareholders. Carl Stine, a partner at Wolf Popper who, with co-counsel, represents plaintiffs in the case commented: “This is a great victory for the former public shareholders of Metrologic. We are gratified that the appellate court agreed with our arguments about Elliott.”
In re Metrologic Instruments, Inc. Shareholders Litigation
This class action for breach of fiduciary duty challenges the fairness of a merger transaction orchestrated by Metrologic’s founder and then-Chairman of the Board for grossly inadequate consideration. After injunctive relief was denied and the merger consummated, the parties commenced discovery and preliminary settlement discussions. However, those discussions were terminated when defendants “flipped” the company by selling it to Honeywell International, Inc. for $720 million, 95% more than was paid to plaintiffs and the class for the same company. Defendants’ motion to dismiss was denied and plaintiffs’ motion for class certification was granted. After the Court granted summary judgment to some of the defendants, plaintiffs and the remaining defendants entered into a partial settlement for $11,950,000. Plaintiffs' appeal of the dismissal of the other defendants is pending. Wolf Popper is a member of Plaintiffs’ Executive Committee.
For additional information about this case, please contact Carl L. Stine at email@example.com or at (212) 759-4600.