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
The National Labor Relations Board (the “Board”) recently refined its test to determine whether em...
Read More >
One new and different item laid out in the 2017 Evaluation, supplementing the Ten Hallmarks of an Ef...
Read More >
While the novel coronavirus (COVID-19) continues to disrupt the global economy, it is also causing t...
Read More >
Key Points - The US Court of Appeals for the First Circuit reversed a lower court decision which he...
Read More >
In Borealis Power Holdings Inc. v. Hunt Strategic Utility Investment, L.L.C., the Delaware Supreme C...
Read More >
New York state's High Court has expanded the optional safety device exception to strict products lia...
Read More >