In Re Pacer International, Inc.

In this class action, stockholders sued to prevent a proposed merger alleging that the company’s board of directors had breached their fiduciary duty. After expedited discovery, the stockholders agreed to settle in consideration for disclosure of additional information that could affect approval of the merger. The court preliminarily approved the proposed settlement and ordered the company to notify all potential class members of the proposal. Only one class member objected to the proposed settlement. After a fairness hearing, the chancery court approved the settlement and denied the objector’s request for access to discovery materials obtained during the litigation. The objector appeals, arguing that the chancery court erred in denying it access to discovery and in approving the proposed settlement. Upon review, we conclude that the chancery court did not abuse its discretion. Accordingly, we affirm.