Stockholder Wants $395K Award in Paylocity Fee-Shifting Case

A Paylocity Holding Corp. stockholder who successfully challenged the company’s fee-shifting bylaw is requesting $395,000 in attorneys’ fees ( Solak v. Sarowitz, Del. Ch., No. 12299, fee petition 3/13/17).

John Solak, who is represented by Andrews & Springer LLC, made the request after the Delaware Chancery Court’s novel ruling in December finding the bylaw invalid.

The decision was the first to interpret a state statute that bars stock corporations from adopting provisions that make shareholders bear all the legal expenses when they sue a company over its internal affairs and lose.

Paylocity’s bylaw would have allowed the cloud-based payroll-services ...