News & Analysis as of

Fiduciary Duty Private Equity Firms

Skadden, Arps, Slate, Meagher & Flom LLP

Don’t Call It a Comeback: A Decade Later, the Corwin Doctrine Still Packs a Knockout Punch

The Delaware Supreme Court’s 2015 decision in Corwin v. KKR Financial Holdings LLC1 reshaped the landscape of merger and acquisition litigation by establishing a powerful defense for Delaware companies. Under the Corwin...more

Cadwalader, Wickersham & Taft LLP

Delaware Court of Chancery Permits Reliance on News Articles and Information Post-Dating Books and Records Demand

On January 29, 2025, in State of Rhode Island Office of the General Treasurer v. Paramount Global (the “Decision”), the Delaware Court of Chancery issued a post-trial opinion, broadening the types of sources a stockholder may...more

Skadden, Arps, Slate, Meagher & Flom LLP

Court Finds Mindbody CEO Liable Under Revlon and That Buyer Aided and Abetted Disclosure Violations

In March 2023, the Delaware Court of Chancery issued a rare decision holding an officer personally liable for damages for breach of fiduciary duty under a post-closing Revlon enhanced scrutiny analysis. Specifically, the...more

Hicks Johnson

How to Prepare for the Deluge of SPAC Litigation

Hicks Johnson on

Transactions that involve special purpose acquisition companies (SPACs) have risen at a meteoric rate in recent months, from $3 billion in 2020 to $166 billion in the first three months of 2021 alone.[1] With sponsors ranging...more

Proskauer - The Capital Commitment

Portfolio Companies Continue to be a Source of Litigation Risk

A significant ownership stake in a portfolio company has always raised the specter of claims against funds, sponsors, and sponsor-appointed board designees, if for no other reason than they are perceived by the plaintiffs’...more

Proskauer - The Capital Commitment

The Portfolio Company Playbook – Chapter 2: Navigating Risk from Conflicts of Interest

Private funds frequently negotiate for special rights when making an investment in a portfolio company, such as the right to appoint one or more board directors, voting rights, and liquidation preferences. Fund sponsors often...more

Proskauer - The Capital Commitment

Portfolio Company Insolvency: Risk Mitigation Strategies for Fund Sponsors and Board Designees

COVID-19 continues to disrupt normal business operations, creating liquidity problems and negative working capital for many companies. As fund sponsors take actions to help their portfolio companies navigate through this...more

ArentFox Schiff

SDNY Allows Nine West LBO Securities Litigation to Move Forward

ArentFox Schiff on

In early December, the United States District Court for the Southern District of New York denied, in part, a motion to dismiss claims of breach of fiduciary duty and recovery of fraudulent conveyances brought against former...more

Troutman Pepper Locke

Fraud on the Board II: Conflicted CEO Tilts Company Sale in PE Firm’s Favor

Troutman Pepper Locke on

In In re Mindbody, Inc. Stockholders Litigation, the Delaware Court of Chancery declined to dismiss breach of fiduciary duty claims against the chief executive officer of MINDBODY, Inc. (the Company) arising out of the...more

Proskauer - The Capital Commitment

Ten Tips for Navigating Risks and Liability at Portfolio Companies During COVID-19

Many portfolio companies continue to confront business disruptions as a result of the COVID-19 pandemic. Even prior to the pandemic, we were seeing an uptick in litigation claims against sponsors and funds arising out of...more

Winstead PC

Looking Past the Face of the Shiny Penny: Check the Fine Print of All Private Company Investments

Winstead PC on

According to the financial press, private equity investors are holding huge sums waiting for the right private company in which to invest. In late March, CNBC reported that private equity firms have a staggering $1.5...more

A&O Shearman

Delaware Court Of Chancery Denies Motion To Dismiss Claims Regarding Squeeze-Out Merger Because Special Committee Members Were...

A&O Shearman on

On February 26, 2020, Chancellor Andre G. Bouchard of the Delaware Court of Chancery denied a motion to dismiss breach of fiduciary duty claims brought by former shareholders of AmTrust, Inc., challenging the take-private...more

A&O Shearman

Delaware Court Of Chancery Dismisses Transaction-Related Breach Of Fiduciary Duty Claims After Board Terminates Merger In Favor Of...

A&O Shearman on

On December 30, 2019, Vice Chancellor Joseph R. Slights III of the Delaware Court of Chancery dismissed breach of fiduciary duty claims brought by former stockholders of Essendant Inc. after it was acquired in a tender offer...more

Pillsbury Winthrop Shaw Pittman LLP

PetSmart Tells PE Firms to GetSmart on Privilege

How PE firms can minimize attorney-client privilege risks after Argos Holdings Inc. and PetSmart Inc. v. Wilmington Trust N.A. PE firms face a variety of litigation and deal-related attorney-client privilege challenges...more

A&O Shearman

Delaware Court Of Chancery Holds That Concurrent Appraisal Action Does Not Preclude Post-Closing Fiduciary Duty Breach Claims

A&O Shearman on

On December 11, 2018, Vice Chancellor Joseph R. Slights III of the Delaware Court of Chancery denied a motion to dismiss breach of fiduciary duty claims against the former CEO of a technology company (the “Company”) in...more

Carlton Fields

Arbitration Provision Enforceable Despite Questions About Legitimacy Of Remainder Of Agreement

Carlton Fields on

A New York state trial court has denied a motion to stay arbitration in an action brought by plaintiffs, a private equity firm and its affiliate, against defendants, two of plaintiffs’ former officers, despite plaintiffs’...more

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