M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

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Friday, November 23, 2007

SLM Retreats

SLM is using the Thanksgiving holiday to make a tactical shift in its litigation with the Flowers Group.  On Wednesday, SLM sent a letter withdrawing its motion for an expedited paper ruling.  Instead, the dispute will now be settled at a later date through a full trial.  In making this request SLM stated:

prospect of settlement in this matter is sufficiently remote that it does not justify asking the Court to decide the issue posed by the motion for Partial Judgment . . . .

SLM also announced that it had changed litigation counsel, hiring Brendan V. Sullivan at Williams & Connolly.  Likely, SLM is coming to grips with the fact that on paper its case is not a strong one.  I can't come to any other conclusion -- if SLM really thought it would win this motion it would proceed full speed ahead whether or not there was a prospect for settlement.  SLM's actions likely mean there will not be a trial until Fall at the earliest.  It appears that SLM has decided that it is time to move on and get down to the business of running their company rather than fighting what appears to be a less than winning battle.  A victory for both SLM and the Flowers group. 

http://lawprofessors.typepad.com/mergers/2007/11/slm-retreats.html

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