Fees Pushing $100,000 Fuel Doomed M&A Lawsuits Lawyers Call Easy

Some judges have been slower than others to undercut the “mootness fees” driving a torrent of M&A litigation, potential six-figure payouts dangled before lawyers who file suits destined for dismissal.

A bid by Volta Inc. shareholders for $171,000 in attorneys’ fees failed last month in a case over Shell Plc’s $149 million buyout of the electric-vehicle charging company. It’s the among the latest decisions in a growing push by judges to disincentivize challenges to proposed mergers — particularly those seeking big payouts from companies after a remedial disclosure renders the lawsuit moot.

This type of litigation rarely halts a ...