In re Dell Technologies Inc. Class v. Stockholders Litigation

Summary

The Supreme Court of Delaware affirmed a common-fund fee award of 26.67% of a $1 billion settlement arising from litigation over Dell Technologies’ redemption of Class V stock. The court held that Delaware’s multi-factor equitable framework governs megafund fee awards and permits, but does not require, a declining percentage based on fund size; the Court of Chancery adequately justified declining to reduce the award. The court also held that fees may be calculated as a percentage of the gross common fund and that the fee award was not undermined by the court’s consideration of counsel’s time, effort, and the settlement’s risk-adjusted value.