Alcarez v. Akorn, Inc.

In a consolidated matter of six lawsuits brought under federal securities law, the Seventh Circuit considered the question of “mootness fees” in federal litigation. In the underlying matter, multiple lawsuits were filed seeking additional disclosures on corporate disclosure documents, the parties agreed to the disclosures without any finding of wrongdoing, and the parties then agreed to the payment of attorneys or "mootness" fees. A shareholder then filed a petition to intervene to object to the payment of the fees and to request that they be refunded to the corporation. The trial court denied the motion to intervene. The Seventh Circuit vacated the district court’s order denying the motion to intervene and remanding to allow the intervenor to make a motion under FRCP 60(b). The Seventh Circuit also dismissed two of the concurrent appeals for lack of standing. (WOODS, concurring)