Lawmakers would request a report on lawyers’ fees in stockholder lawsuits

Delaware lawmakers would ask the state bar’s corporation law council to prepare a report recommending possible laws on lawyers’ fees. The report would cover fee awards in corporate lawsuits claimed to benefit stockholders. The council would be asked to weigh incentives for cases that protect stockholders against excessive costs for companies and stockholders. The request calls for the report on or before March 31, 2025, to be sent to legislative leaders for lawmakers and to the governor.

Lawmakers would ask the council to examine whether a cap on lawyers’ fee awards would be useful. The review would concern fee awards in the corporate lawsuits covered by the report. The council would consider a cap based on a multiple of the stockholders’ lawyers’ hours at their usual hourly rates. The council would consider the cap as part of the report requested on or before March 31, 2025.