A November 18, 2007 New York Times article entitled "If Buyout Firms Are So Smart, Why Are They So Wrong?" (here) takes a critical look at many buyout firms’ sudden haste to walk away from deals that were much ballyhooed only a short time ago. Clearly the bloom has gone off the buyout
Anatomy of a Failed MBO (and Ensuing Lawsuit)
In prior posts, I have discussed how conflicts of interest in management-led buyouts can give rise to litigation (refer here), and I have examined the ways the recent credit market turmoil is not only undermining leveraged buyouts but also engendering lawsuits (refer here). I have also extensively reviewed options backdating litigation (most recently
Leveraged Buyout Bust By-Product: Lawsuits
As credit market disruption has reached the leveraged buyout world, a number of deals announced earlier this year to great fanfare have been unceremoniously snuffed, while others are on life support. Not too surprisingly, one direct result from this deal derailment has been a spate of lawsuits, as jilted partners and disappointed investors cast blame
The “Going Private” Wave and the Delaware Courts
If corporations domiciled in Delaware are going to be affected by the wave of “going private” transactions, then Delaware courts want to make sure that they set the ground rules. In a May 9, 2007 decision in the In re Topps Company Shareholders Litigation in the Delaware Chancery Court (opinion here), Chancellor Leo Strine
Going Private Lawsuits Surge
As the number of securities fraud lawsuits has declined (refer here), an alternative means that plaintiffs lawyers are finding to amuse and enrich themselves are lawsuits filed in connection with “going private” transactions. An April 24, 2007 National Law Journal article entitled “New Legal Battles Over Going Private” (here) takes a look
The “Buyout Boom” and D & O Claims
The D & O Diary has previously noted (most recently here) the problems that can arise in connection with “going private” transactions in which management teams up with outside investors to buy out public shareholders’ interests. The latest example may be Clear Channel Communications’ November 16, 2006 announcement (here) that a group
The Latest on “Going Private” Deals and D & O Risk
The D & O Diary has previously commented (most recently here) on the increasing risk of D & O claims arising from “going private” transactions in which incumbent management teams up with outside investors to buy out the interests of public shareholders. The most recent high-profile “going private” transaction to be announced – the
Update on Private Money, Public Company Risk
More About MBOs and D & O Risk
MBOs: Another Example of Private Funding and D & O Risk
The D & O Diary has previously written (here and here) about the problems and conflicts of interests that can arise from the involvement of private fund investors (private equity firms, hedge funds and buyout firms) in publicly traded companies. In a September 3, 2006 column in the New York Times (here