What s peculiar is that no counterclaim was ever filed, he said. It sounds like CMG strategically decided to take the high ground. Richard Magid, an attorney for the plaintiff, said at the settlement hearing the payment of the ACR payment had nothing to do with the case brought against the three executives. There were no claims or allegations ever made against the ACR beneficiaries, and no claims regarding the ACR beneficiaries payments were ever made in connection with any of the allegations in the complaint. The matter was freestanding.
Litigation is really an extension of negotiation.
When lawsuits are brought, they give you bargaining power. And they were related not so much to the merger with CMG, they were related entirely to the sale of the securities by the Defendants to Merit as a result of the merger, Magid said. That was then. This is now. Someone at Magellan made a bad decision to bring the lawsuit, said Francis P. Devine, of the Philadelphia firm of White and Williams LLP, who also represented the defendants.