$65M Lending Co. Sale Tainted By Conflict, Chancery Told
Law360 (January 10, 2019, 7:54 PM EST) -- Public stockholders of student and specialty lender First Marblehead Corp. challenged the company's roughly $65 million go-private sale in Delaware's Chancery Court on Wednesday, alleging the 2016 deal was steered by a conflicted controlling group to a company owned by First Marblehead's second-largest stockholder.
The suit, led by public stockholder Miguel Massari, accused company co-founder, director and board chairman Daniel Meyers and other directors and parties of multiple breaches of fiduciary duties to the company during events leading up to the the $5.05-per-share sale in August 2016.
"In selling the company, the individual defendants failed to take reasonable efforts to maximize...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!