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Texas District Court Rejects Target Corporation Standing for “Due Diligence” Costs

On March 21, 2012, U.S. Judge Barbara M. G. Lynn of the U.S. District Court for the Northern District of Texas held that target corporations have no standing under Section 14(a) of the Securities Exchange Act of 1934 to recover costs incurred in evaluating and analyzing proxy solicitation materials and investigating a potential acquirer.