The Delaware Court of Chancery has refused to reopen the record in a lawsuit filed by shareholders of ambulance service provider Rural/Metro Corp. alleging that company’s financial adviser, RBC Capital Markets LLC, aided and abetted Rural/Metro’s board members’ breach of fiduciary duty in the company’s $438 million sale to Warburg Pincus LLC in 2011. Rural/Metro’s shareholders sought to include a 2013 declaration by the company’s new chief financial officer in a suggestion of bankruptcy filing that the company could not accurately forecast revenue, but the court said permitting the evidence would be prejudicial to the defendants.
Vice Chancellor J. Travis Laster issued the opinion Tuesday in In re Rural/Metro Shareholders Litigation. Initially, the lawsuit included claims against Rural/Metro’s directors and its other financial adviser, Moelis & Co LLC. However, Moelis agreed to settle the claims against it for $5 million in April and Rural/Metro’s directors settled for $6.6 million later that month, according to court documents.
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