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Monday, June 29, 2015

On June 22, 2015, the Court of Chancery approved a settlement in the matter of Ponzio et al. v. Preston et al. (8672-VCG).  Plaintiffs had alleged that the Velcera Inc. board of directors breached its fiduciary duties by illegally transferring more than 80% of Velcera’s equity to certain investors without informing the public shareholders and then selling Velcera to the Perrigo Company.  Pursuant to the original terms of the merger, holders of the type of shares held by Plaintiffs and the members of the settlement class were to receive between $3.4 million and $4.9 million of the purchase price.  As part of the settlement, Cooch and Taylor and  lead counsel, Lifshitz & Miller, succeeded in increasing the amount to be received by the class members by another $3,850,000.