IN RE PHILADELPHIA STOCK EXCHANGE, INC.

Nos. 613, 2007, 615, 2007.

945 A.2d 1123 (2008)

In the Matter of the PHILADELPHIA STOCK EXCHANGE, INC.

Supreme Court of Delaware.

Decided: March 27, 2008.


Attorney(s) appearing for the Case

Robert J. Valihura, Jr., Esquire (argued), The Law Office of Robert J. Valihura, Jr., Wilmington, Delaware; for Objectors Below-Appellants Richard P. Kahn, Tim Lobach, Eugene Saftlas, DLD Investments LLC, William Marko, Ralph Gritt, PennMont Securities, Mitchell Marcus and Aubrey & Company; Of Counsel: Steven B. Mirow, Esquire, of Philadelphia, Pennsylvania; for All Objectors Below-Appellants Other Than PennMont Securities; Lynanne B. Wescott, Esquire, of Philadelphia, Pennsylvania; for Objector Below-Appellant PennMont. Securities.

Michael J. Maimone (argued), Paul D. Brown and Joseph B. Cicero, Esquires, of Edwards Angell Palmer & Dodge LLP, Wilmington, Delaware; for Appellants William Schultz, Mitchell Berkowitz, Terrence Gallagher, Mark Thomas, Tom Flynn, Alex Benedik, Don Riley, Glenn Smith, Jeff Mattero, Jim Crompton, Al Perry, Steve Katlin, James W. Ryan, Shoreline Trading, Michael Burtnick, Chris Showers, Ron Henry, Keith Ford, Tom Mester, Fred Martin, Dick Mesirov and Hovde Capital Advisors LLC.

Joseph A. Rosenthal and Jessica Zeldin, Esquires, of Rosenthal, Monhait & Goddess, P.A., Wilmington, Delaware; Of Counsel: Lawrence Deutsch (argued), Robin Blumenfeld Switzenbaum, Barbara A. Podell and Joshua C. Schumacher, Esquires, of Berger & Montague, P.C., Philadelphia, Pennsylvania; for Plaintiff Below-Appellee Chuck Ginsburg.

Peter J. Walsh, Jr. and Abigail M. LeGrow, Esquires, of Potter Anderson & Corroon LLP, Wilmington, Delaware; Of Counsel: Eric S. Goldstein, Esquire, of Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, New York; for Defendant Below-Appellee Citigroup Financial Products, Inc.

Paul J. Lockwood, Esquire (argued), of Skadden, Arps, Slate, Meagher & Flom LLP, Wilmington, Delaware; Of Counsel: Jay B. Kasner, Esquire, of Skadden, Arps, Slate, Meagher & Flom LLP, New York, New York; for Defendant Below-Appellee Merrill Lynch, Pierce, Fenner & Smith Incorporated.

Edward M. McNally, Esquire, of Morris James LLP, Wilmington, Delaware; Of Counsel: Stephen J. Senderowitz, Esquire, of Winston & Strawn LLP, Chicago, Illinois; for Defendant Below-Appellee Citadel Derivatives Group LLC.

Allen M. Terrell, Jr., and Catherine G. Dearlove, Esquires, of Richards, Layton & Finger, P.A., Wilmington, Delaware; Of Counsel: Francis E. Bivens and John B. Gaffney, Esquires, of David, Polk & Wardwell, New York, New York; for Defendant Below-Appellee Morgan Stanley & Co. Incorporated.

David C. McBride and Christian Douglas Wright, Esquires, of Young Conaway Stargatt & Taylor LLP, Wilmington, Delaware; Of Counsel: Herbert S. Washer and Adam S. Hakki, Esquires, of Shearman & Sterling LLP, New York, New York; for Defendant Below-Appellee Credit Suisse First Boston Next Fund, Inc.

Joel E. Friedlander, Esquire, of Bouchard Margules & Friedlander, P.A., Wilmington, Delaware; Of Counsel: Scott A. Edelman, Stacey J. Rappaport and Robert C. Hora, Esquires, of Milbank, Tweed, Hadley, McCloy LLP, New York, New York; for Defendant Below-Appellee UBS Securities LLC.

William M. Lafferty (argued), David J. Teklits, Samuel T. Hirzel and Jeremy D. Eicher, Esquires, of Morris, Nichols, Arsht & Tunnell LLP, Wilmington, Delaware; Of Counsel: Stephen J. Kastenberg and Paul Lantieri III, Esquires, of Ballard Spahr Andrews & Ingersoll, LLP, Philadelphia, Pennsylvania; Tariq Mundiya, Esquire, of Willkie Farr & Gallagher LLP, New York, New York; for Defendant Below-Appellee Philadelphia Stock Exchange, Inc., and the Individual Defendants Below-Appellees.

Before STEELE, Chief Justice, HOLLAND, BERGER, JACOBS and RIDGELY, Justices, constituting the Court en Banc.


JACOBS, Justice.

Pending before us are appeals from an Order and Final Judgment of the Court of Chancery approving a settlement of this shareholder class action, over the objection of certain members of the class. The action challenged certain transactions (the "Strategic Investor Transactions") in which almost 90% of the equity of the Philadelphia Stock Exchange ("PHLX" or "the Exchange") was sold to six institutional investors (the "Strategic Investors").

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