Although announced two years earlier, Enforcement and Penalty Guidelines (the Guidelines) were finally released by the US Department of the Treasury (Treasury) as Chair of the Committee on Foreign Investment in the United States (CFIUS) on October 20, 2022. Pursuant to the Foreign Investment Risk Continue Reading
SEC Adopts Pay Versus Performance Disclosure Requirements
On August 25, 2022, the Securities and Exchange Commission (SEC) adopted pay versus performance disclosure rules that will require public companies to provide extensive information that is intended to demonstrate the relationship between the executive compensation that is actually paid by a company Continue Reading
Shareholders May Challenge Fair Value for Fractional Interests under Limited Circumstances
In Samuels v. CCUR Holdings, Inc.,C.A. No. 2021-0358-PAF (Del. Ch. May 31, 2022), the Delaware Court of Chancery found that a shareholder may challenge the fair value of a payment for a fractional interest in a company under Section 155(2) of the Delaware General Corporation Law (DGCL). The court’s Continue Reading
Ousted Manager Survives Challenge to Complaint Regarding Basis for Removal from Power
W.D.C. Holdings, LLC d/b/a Northstar Commercial Partners, et al. v. IPI Partners, LLC, et al., C.A. No. 2020-1026-JTL (Del. Ch. June 22, 2022), Laster, V.C.—The Delaware Court of Chancery’s decision in W.D.C. Holdings proves valuable to litigators, transactional attorneys, and business persons Continue Reading
Case Summary: Parseghian v. Frequency Therapeutics, Inc.
In Parseghian v. Frequency Therapeutics, Inc., the Delaware Court of Chancery dismissed a complaint for failure to state a claim as to Count II, which alleged that defendant Lucchino (the CEO of Frequency Therapeutics) breached his fiduciary duty of loyalty, and for lack of subject matter Continue Reading
Delaware Court of Chancery Denies Indemnification for Former CEO and Provides Color on Entitlement to Proportional Indemnification
In Evans v. Avande, Inc., C.A. No. 2018-0454-LWW (Del. Ch. June 9, 2022), the Delaware Court of Chancery found that a health care services company did not have to pay legal expenses for its former CEO, who had ultimately been found liable for breaching his fiduciary duties to the company. Continue Reading
Defendants Fail to Defeat Fiduciary Duty Claim Based on the Unique Benefit Realized from the Sale
In Manti Holdings, LLC, et al. v. The Carlyle Group, Inc., et al., C.A. No. 2020-0657-SG (Del. Ch. June 3, 2022), the Delaware Court of Chancery addressed fiduciary duty claims in the context of a conflicted controller transaction. The court found that the plaintiffs plead facts capable of showing Continue Reading
New Law Will Impact Change in Control Transactions Between Health Care Entities in New Jersey
New Jersey health care facilities and home care services agencies considering a change in control must soon be mindful of the requirements of Senate Bill No. 315 (the Act), signed into law by Governor Phil Murphy on August 18, 2022, and effective on November 16, 2022. The Act provides employment Continue Reading
Federal Contractor Vaccine Mandate – Where Do Things Stand Now?
In the fall of 2021, President Biden issued Executive Order 14042 (EO 14042), which, among other things, directed federal agencies to require federal contractors and subcontractors to mandate that most of their employees be vaccinated against COVID-19. Our description of that requirement is Continue Reading
Court of Chancery Reinforces Delaware Law’s “Twice-Tested” Review When Invalidating Board Action Designed to Disenfranchised Stockholders
In Totta v. CCSB Financial Corp., C.A. No. 2021-0173-KSJM (Del. Ch. May 31, 2022) (McCormick, C.), the Delaware Court of Chancery held that a board of directors improperly applied a voting aggregation provision in the company’s charter that disenfranchised several stockholders. In so holding, Continue Reading