The proposed settlement is for $3 million in cash and is equivalent to LIG having been purchased by General Electric Company (“GE”) or another purchaser for approximately $23 million as compared to the $14.4 million price at which it was acquired by GE.
On November 10, 2009, KOL commenced suit on behalf of common shareholders of Living Independently Group, Inc. (“LIG”), against LIG, its Board of Directors, its Chief Operating Officer, and General Electric Company (“GE”) concerning GE’s acquisition of LIG without any consideration being paid to the common shareholders. On January 8, 2010, KOL filed an amended complaint which Defendants moved to dismiss. After extensive briefing and lengthy oral argument before Chancellor Chandler of the Delaware Chancery Court, Chancellor Chandler denied the motion to dismiss the principal claims alleged against LIG and the Individual Defendants but dismissed GE without prejudice to reassert claims against it based upon discovery. After extensive discovery, the parties negotiated a settlement by which a Settlement Fund consisting of $3 million in cash will be created for the benefit of the class. A Notice describing the proposed Settlement was mailed to class members on June 7, 2013 and the Court has scheduled a hearing to consider whether to approve the proposed Settlement for August 1, 2013.
At the August 1, 2013 hearing, the Chancery Court approved the proposed Settlement and entered the proposed Final Judgment. That Judgment became final (no longer subject to appeal) on August 31, 2013. Checks were mailed to class members on October 2, 2013.