In a case of first impression, the Delaware Court of Chancery has ruled that the Delaware Uniform Contribution Among Tortfeasors Act does not bar RBC Capital Markets LLC from collecting a settlement credit because other defendants in the Rural/Metro Corp. shareholder litigation settled with the plaintiffs. However, the court also ruled the doctrine of unclean hands prevented RBC from receiving a full settlement credit and ordered the financial institution to pay roughly $76 million, or $4.17 per share, to Rural/Metro’s stockholders.
Vice Chancellor J. Travis Laster imposed the damages upon RBC for aiding and abetting the breach of fiduciary duties by Rural/Metro’s board when the company was sold to Warburg Pincus LLC for $438 million in 2011.
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