Monday, March 10, 2014
In re Rural Metro Corp: Investment Bankers' Liability for Aiding and Abetting Breaches of Fiduciary Duty
On Friday (March 7, 2014), the Delaware Court Chancery issued Vice Chancellor Laster's 91-page post-trial opinionin In re Rural Metro Corp. S’holders Litig.
The decision holds the investment bank defendant, RMC Capital Markets LLC, liable for aiding and abetting breaches of fiduciary duty by the directors. I have not finished the entire opinion yet, but interested readers can access the full opinion here.
The opinion is sure to be one of the most carefully read Chancery opinions of the year - especially by those in the M&A area - and has already generated a fair bit of commentary. For now, I will outsource to the following:
- Jef Feeley (Bloomberg)
- Liz Hoffman (Wall Street Journal)
- Francis Pileggi (Eckert Seamans)
- Brian JM Quinn (Boston College)
- Jonathan Stempel (Reuters)
- Richards, Layton & Finger