Grupo M (GMEXICOB.MX) Saturday issued a statement on the Delaware Supreme Court's denial of the Motion for Reargument by Grupo's subsidiary Americas Mining Corp.
Grupo Mexico General Counsel Mauricio Ibanez said, "This ruling sets a dangerous precedent, if not a new high for court sanctioned legal fees in a derivative action. Excluding the defendants shares, it represents an award of 80 percent of the benefit obtained for their clients. On an hourly basis, it comes to $35,000 per hour."
"This is an unwarranted transfer of wealth from the shareholders of a publicly traded company to plaintiffs' attorneys. It turns the well established legal principle that 'those who profited from the litigation should share its costs' on its head, and sends a clear if disturbing message to plaintiffs' attorneys they can be made wealthy by an award out of proportion to the benefit they actually win for their clients.", said Ibanez.
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