Announcements
Feb. 04, 2014

Kramer Levin Wins Dismissal of Shareholder Class Action Suit Against the Directors of Answers.com

On February 3, 2014, the Delaware Court of Chancery granted summary judgment dismissing fiduciary duty claims against the directors of Answers.com, creator of the answer engine Answers.com. The claims were brought in a shareholder class action challenging the Internet company’s $127 million acquisition by AFCV Holdings, a portfolio company of Summit Partners. In a 43-page opinion, the Court rejected shareholder allegations that the Answers’ board had breached its fiduciary duties and that the buyout group had aided and abetted the breach. The Court held that the undisputed evidence “is consistent with a board’s attempt to comply with its fiduciary duties and to obtain the best price it could.” The Court had previously denied plaintiffs’ motion seeking to enjoin the acquisition.

Answers.com was represented by Litigation partners Jonathan M. Wagner and Alan R. Friedman, special counsel Susan Jacquemot and associate Adina C. Levine. Corporate partners Scott S. Rosenblum and Abbe L. Dienstag had represented Answers.com in the acquisition by AFCV.

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