Loral Space & Communications Inc. v. Highland Crusader Offshore Partners, L.P.

Summary

The Delaware Supreme Court affirmed the Court of Chancery's certification of a stockholder class action alongside a derivative action challenging Loral Space & Communications' transaction with MHR Fund Management. The court held that direct and derivative claims arising from the same corporate transaction may be litigated concurrently. It also upheld the award of $10,627,587 in attorneys' fees and expenses to class counsel, finding no abuse of discretion.

Holdings

1. Direct and derivative claims arising from the same facts may be litigated at the same time; the pendency of a derivative action does not bar stockholders from bringing a direct action or prevent certification of a stockholder class.
2. The Court of Chancery acted within its discretion in awarding class counsel $10,627,587 in fees and expenses because counsel achieved a benefit exceeding $100 million, obtained a substantial therapeutic benefit, devoted 5,804 hours to the litigation, and satisfied the applicable fee-award factors.

Questions Presented

1. Whether stockholders may pursue a direct class action when a derivative action concerning the same alleged wrongs is also pending.
2. Whether the Court of Chancery abused its discretion in awarding class counsel $10,627,587 in attorneys' fees and expenses.

Disposition

affirmed