19Dec
Delaware Court of Chancery Issues Precedential Decision Addressing the Impact of COVID-19 on M&A Transaction, Finding Violation of Ordinary Course Covenant but No Material Adverse Effect
In AB Stable VIII LLC v. Maps Hotels and Resorts One LLC, the Delaware Court of Chancery issued a precedential decision addressing whether a buyer could walk away from an M&A transaction because the target company’s responses to the COVID-19 pandemic constituted either a “material adverse effect” (MAE) or a breach of the covenant to operate in the ordinary course of business between signing and closing (“Ordinary Course Covenant”). Although the MAE definition did not include an exception for...
By:
Akin Gump Strauss Hauer & Feld LLP
Related
In a two-part series, Michael Volkov examines the continuing problem of identifying and mitigating b...
Read More >
The Department of Labor recently issued a fact sheet intended to help employers understand their ret...
Read More >
As we previously reported, on August 12, 2019, New York State Governor Andrew Cuomo signed into law ...
Read More >
It's the end of the year and while everyone is busy, employers in California should be aware of new ...
Read More >
James D. Rosener, partner in the Commercial Department of Pepper and head of the firm's Internationa...
Read More >
On the heels of passing sweeping changes to New York’s harassment and discrimination laws, the stat...
Read More >