Publication Date: 2022-09-13
Practice Area: Mergers and Acquisitions
Industry: Financial Services and Banking | Investments and Investment Advisory | Software
Court: Court of Chancery
Judge: Chancellor McCormick
Attorneys: For plaintiff: Peter J. Walsh, Jr., Nicholas D. Mozal, Potter Anderson & Corroon LLP, Wilmington, DE; Orion Armon, Cooley LLP, Denver, CO; Luke Cadigan, Cooley LLP, Boston, MA; Alexandra Leeper, Cooley LLP, Palo Alto, CA; Katelyn Kang, Cooley LLP, New York, NY; Bradley Levison, Carrie A. Herschman, Herschman Levison Hobfall PLLC, Chicago, IL for plaintiffs.
for defendant: A. Thompson Bayliss, Stephen C. Childs, Abrams & Bayliss LLP, Wilmington, DE; David B. Hennes, Adam M. Harris, Alexander B. Simkin, Ropes & Gray LLP, New York, NY; Sarah M. Samaha, Ropes & Gray LLP, Washington, DC for defendants.
Case Number: 2021-0447-KSJM
Fraud claim arising from acquisition was not dismissed where sellers plausibly alleged that buyers overinflated the amount of monetizable revenue in the buyers' pipeline, which induced sellers into the transaction on the understanding they could hit contractual milestones for earnout payments.