While greenlighting a disclosure-only settlement related to a take-private deal for a California software company, a Delaware Chancery Court judge on Thursday challenged the fairness of arrangements contingent on broad releases, suggesting the beginning of the end of the practice.

Vice Chancellor Glasscock's opinion advanced the court's evolving view that disclosure-only settlements are a thing of the past and may no longer have the best interests of the parties in mind, especially those with a broad release from any future claims from shareholders, explained David Margules, a Ballard Spahr LLP partner.

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