Southern Peru: Record-breaking trial victory against majority shareholder

Secured the largest damage award in Delaware Chancery Court history in stockholder action brought against the company’s majority shareholder.

In 2005, Southern Peru, a publicly-traded copper mining company, acquired Minera Mexico, a private mining company owned by Southern Peru’s majority stockholder Grupo Mexico. The acquisition required Southern Peru to pay Grupo Mexico more than $3 billion in Southern Peru stock. We alleged that Grupo Mexico had caused Southern Peru to grossly overpay for the private company in deference to its majority shareholder’s interests. Discovery in the case spanned years and continents, with depositions in Peru and Mexico. The trial court agreed and ordered Grupo Mexico to pay more than $2 billion in damages and interest, which we believe is the largest trial verdict in Delaware history. The Delaware Supreme Court affirmed on appeal.

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