Source: https://securitiesdiary.com/2015/03/02/update-on-status-of-proposed-settlement-in-gordon-v-verizon-communications-inc/
Timestamp: 2019-04-21 08:47:14+00:00

Document:
Update on Status of Proposed Settlement in Gordon v. Verizon Communications, Inc.
I’ve noticed a number of searches seeking further information on the status of the case Gordon v. Verizon Communications, Inc., Index No. 653084/2013, pending before Judge Melvin Schweitzer in the New York Supreme Court, New York County. This is a putative class action challenging the acquisition by Verizon of Vodafone’s 45% minority stake in Verizon Wireless for $130 billion. We previously discussed the objections lodged to a proposed settlement in that action, and Judge Schweitzer’s rejection of the settlement, in this post: Commentary on Abusive State Law Actions Following M&A Deals. That was followed by a post on a scathing judicial statement on the impropriety of such “merger tax” cases (NY Court Flexes Muscles in Rejecting Bogus “Merger Tax” Settlement), which discussed a New York judge’s rejection of a proposed settlement in another knee-jerk merger challenge in the case City Trading Fund v. Nye, No. 651668/2014 (NY Sup. Ct.). I recently received a note asking about where things stand in Gordon v. Verizon Communications, so here is an update.
One of the objectors, New York attorney Gerald Walpin, filed a motion for summary judgment on January 6, 2015, asking that the judge dismiss the plaintiff’s claim with prejudice. The filing in support of that motion can be found here. The plaintiff opposed that motion, in papers that can be found here. Mr. Walpin filed this reply brief in favor of the summary judgment motion. The briefing on that motion appears to have been completed on January 24, 2015.
The plaintiff then did two things: (i) on January 21, 2015, she filed a notice of appeal of the decision denying approval of the settlement (the notice of appeal can be found here); and (ii) on February 3, 2105, she filed a motion for reconsideration and reargument of the motion for approval of the settlement (the brief in support of the motion for reconsideration can be found here). In other words, the plaintiff filed an appeal of the decision and then afterward asked that the same decision be reconsidered. These are mutually inconsistent steps. If the decision is appealed, the lower court loses jurisdiction over it and no longer can consider a reconsideration motion. On the other hand, if a timely motion for reconsideration is filed, the earlier decision cannot properly be appealed until that motion is acted upon. Filing the reconsideration motion after the notice of appeal might well be sanctionable. The appeal seems flawed in any event because normally an appeal cannot occur before a case is finally decided. Since Judge Schweitzer only denied a motion to approve the settlement, leaving the underlying case still pending in his court, there would appear to be no decision by him that is immediately appealable, absent a special order allowing an interlocutory appeal to occur. The oppositions to the motion for reconsideration and reargument by the two objectors can be found here (opposition by Mr. Walpin), and here (opposition by objector Jonathan Crist). Plaintiff’s reply brief in support of the motion for reargument is here.
As far as I can tell, no further action has occurred on either the motion for summary judgment or the motion for reconsideration of the denial of the settlement. They each appear to be fully briefed. Until some further action occurs, the proposed settlement is rejected and the case remains pending.
For those interested in the case, and in particular in the hearing held by Judge Schweitzer to consider the proposed settlement, a copy of the transcript of that hearing is available here: Transcript of December 2, 2014 Hearing in Gordon v. Verizon Communications, Inc. on the motion for approval of proposed settlement.
This entry was posted in Class Certification, Derivative Litigation, Private Litigation, Securities Law and tagged abusive derivative litigation, abusive litigation, City Trading Fund v. Nye, class action, class action settlement, court approval of settlements, derivative settlement, Gerald Walpin, Gordon, Gordon v. Verizon, Gordon v. Verizon Communications, Inc., Judge Melvin Schweitzer, Judge Schweitzer, lawyer, legal analysis, M&A litigation, Melvin Schweitzer, merger litigation, merger tax, New York Supreme Court, private securities litigation, securities, securities fraud, securities law, securities litigation, settlements, Verizon, Verizon Communications, Walpin on March 2, 2015 by Straight Arrow.
Any idea of where this is heading ? What would be the potential average settlement for shareholders ?
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