Jarden defeats appraisal lawsuits filed by investment funds

Client(s) Newell Brands

Jones Day successfully represented Newell Brands subsidiary, Jarden Corporation, in connection with appraisal lawsuits filed by more than 15 separate investment funds (which collectively owned more than $630 million worth of Jarden shares) seeking a judicial appraisal of their former shares in Jarden.

The petitioners asserted Jarden was worth $5 billion more than the merger consideration. In July 2019, however, the Chancery Court sided with Jarden finding that the company was worth roughly $48 per share at the time of the merger, which was $11 per share less than the merger consideration and $23 per share less than the price advocated by the petitioners. In September 2019, the Chancery Court rejected the petitioner's motion for rehearing. The petitioners appealed and the Delaware Supreme Court affirmed the Chancery Court decision in July 2020. In a matter of first impression, the Delaware Supreme Court held that the Chancery Court could rely on the unaffected market price of Jarden to assess its fair value under Delaware law.

In re Appraisal of Jarden Corp., No. 12456 (Del. Ch.)