7th Circ. Revives Investor Suit Over Cadant Loans

Law360, New York (March 29, 2011, 4:50 PM EDT) -- The Seventh Circuit on Tuesday revived a shareholder suit accusing several directors of bankrupt modem company Cadant Inc. of committing disloyal acts when they negotiated an ill-fated deal for a pair of bridge loans with J.P. Morgan Partners LLC and Venrock Associates.

A three-judge panel of the U.S. Court of Appeals for the Seventh Circuit determined that a district court judge erred when, seven weeks into trial, he made a judgment as a matter of law in favor of the venture capital groups. J.P. Morgan and...
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