Chancery Keeps Alive Suit Over $553M CD&R Deal Windfall

Law360 (February 10, 2020, 2:57 PM EST) -- The Delaware Chancery Court refused Monday to dismiss a suit accusing Clayton Dubilier & Rice LLC of steering a construction industry supplier it controlled into a $1.2 billion merger with a firm that CD&R had bought for $683 million just three months earlier, leading to a $553 million windfall.

Vice Chancellor J. Travis Laster found in a 67-page ruling that stockholders who sued had a reasonable enough argument to keep alive claims that private equity firm CD&R and eight directors of affiliate NCI Building Systems Inc. breached their fiduciary duties to NCI in the deal by agreeing to pay a 94%,...

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!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!