A $250 million cash settlement to resolve a shareholder class action lawsuit over Microsoft Corp.'s $75.4 billion acquisition of Activision Blizzard Inc. has received final court approval. The Delaware Chancery Court's chief judge, Chancellor Kathaleen St. Jude McCormick, ruled in favor of the settlement on Friday, rejecting objections from a group of merger arbitrage funds.
The funds had raised parallel securities claims in federal court, arguing for a carve-out from the settlement. However, McCormick dismissed these objections, stating that they were 'framed as limited in scope' but could have 'far-reaching consequences.' She emphasized that excluding the federal securities claims would disrupt the settlement and deny class members the benefits of the agreement.
In her 42-page ruling, McCormick highlighted the importance of the settlement for class members, including the funds that objected. She noted that the settlement provided 'incredibly beneficial settlement consideration' and that upholding the objections would undermine the entire agreement.