7th Circ. Has Chance To Cut Off ‘Mootness Fee’ Merger Cases

Law360 cited director of litigation Ted Frank on the Akron merger strike suit.

In what’s believed to be the first time a federal appellate court has been given a chance to address the issue, the Center for Class Action Fairness — a group run by the free market advocates the Competitive Enterprise Institute — on Sept. 10 filed a brief with the Seventh Circuit that attacks the “mootness fee racket.” The suit stems from the dismissal of shareholder suits over the now-scuttled merger of Akorn Inc. with Fresenius Kabi AG, which ended with a $322,500 fee payment to the plaintiffs’ attorneys, according to court records.

“These are repeat players who are just stealing from American shareholders,” said Ted Frank, director of litigation for the CCAF, who is appealing a district judge’s denial of his bid to intervene as a shareholder in three of the Akorn suits. “As an American shareholder myself, we’d like to put a stop to it.”

“It’s just pure extortion,” he added.

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