Weining Hu v. Eli Baker, et al.; Eric Bowers, et al. v. Jason Kelly, et al.

Summary

The United States District Court for the Northern District of California granted final approval of a settlement resolving shareholder derivative actions concerning alleged misconduct related to the merger that formed Ginkgo Bioworks Holdings, Inc. The settlement requires payment of $4.125 million to Ginkgo, contract terminations, governance reforms, and enhanced oversight. The court awarded plaintiffs’ counsel $2,750,000 in attorneys’ fees and costs and approved $8,000 in service awards.

Holdings

1. The proposed global settlement was fair, reasonable, and adequate, and final approval was warranted.
2. The notice provided to shareholders pursuant to the previously approved notice plan was sufficient.
3. The court awarded plaintiffs' counsel $2,750,000 in attorneys' fees and costs and approved a deviation from the Ninth Circuit's 25 percent benchmark.
4. Service awards of $2,000 each to Hu, Bowers, Newman, and Moskowitz were permissible and presumptively reasonable.

Questions Presented

1. Whether the proposed global settlement of the shareholder derivative actions was fair, reasonable, and adequate under Federal Rules of Civil Procedure 23 and 23.1.
2. Whether the notice provided to shareholders was sufficient.
3. Whether the requested $2,750,000 award of attorneys' fees and costs was reasonable, including whether a deviation from the Ninth Circuit's 25 percent benchmark was justified.
4. Whether $2,000 service awards for each of the four derivative plaintiffs were permissible and reasonable.

Disposition

approved