WILMINGTON, Del., Dec. 19, 2016 (GLOBE NEWSWIRE) -- Andrews & Springer LLC today announced that pursuant to a Stipulation and Order Closing the Case, granted by the Delaware Court of Chancery on December 19, 2016, the parties to the Litigation hereby provide the following Notice of Case Dismissal and Mootness Fee Resolution:
Sizmek Inc. Litigation
(Wilmington, DE) On August 3, 2016, Vector Capital and Sizmek Inc. (“Sizmek” or the “Company”) issued a joint press release announcing that they had agreed to terms and entered into the Agreement and Plan of Merger (“Merger Agreement”) whereby Vector Capital would acquire Sizmek through an all-cash tender offer valued at approximately $122 million (the “Tender Offer”). In connection with the Tender Offer, on August 29, 2016, the Company published a Recommendation Statement. Two complaints were filed in the Delaware Court of Chancery against members of the Sizmek board of directors, alleging claims for breach of fiduciary duty for a failure to disclose all material information to shareholders in the Recommendation Statement. On September 9, 2016 the Court consolidated the actions and appointed Co-lead counsel at the request of Plaintiffs Joel Ellis (“Ellis”) and Steven Penza (“Penza” and together with Ellis, the “Plaintiffs”).
On September 19, 2016, the Company made supplemental disclosures by way of Amendment No. 2 to the Solicitation/Recommendation Statement on Schedule 14D-9 of Sizmek Inc. filed with the United States Securities and Exchange Commission, and on October 6, 2016, the Plaintiffs notified the Court in writing that their claims had been rendered moot and requested the Court to retain jurisdiction solely for the purpose of determining Plaintiffs’ counsel’s application for an award of attorneys’ fees and reimbursement of expenses.
After October 6, 2016, the parties engaged in arm’s-length negotiations, and the Company agreed to pay Co-lead counsel $200,000 in attorney’s fees. On December 19, 2016, the Court entered a Stipulation and Order Closing the Case, causing final dismissal of the Action, with prejudice as to the Plaintiffs only. The Court has not and will not pass judgment of the fee payment.
Co-Counsel for Plaintiffs are: Carl Stine, Esq., Wolf Popper LLP, 845 Third Avenue, New York, NY 10022 (212)759-4600; Peter B. Andrews, Esq. Andrews & Springer LLC, 3801 Kennett Pike, Building C, Suite 305, Wilmington, DE 19807 (302)504-4957. Counsel for Defendants are: Raymond DiCamillo, Esq. Richard, Layton & Finger P.A., 920 North King Street, Wilmington, DE 19801 (302)651-7700; Kevin H. Metz, Esq., Latham & Watkins LLP, 555 Eleventh Street, NW, Suite 1000, Washington, D.C. 20004 (202)637-2200.