Case Study: GloNav V. NXP

Law360, New York (November 14, 2011, 3:24 PM EST) -- Frequently, buyers and sellers end up litigating the earn-out provisions in their merger agreements. In a recent memorandum opinion, GloNav Inc., et. al v. NXP B.V., Civ. A. No. 5110 — VCG (Del. Ch., Nov. 4, 2011), the Delaware Chancery Court applied the step transaction doctrine in deciding that a subsequent joint venture (JV) transaction involving NXP (Buyer) triggered its obligation to make certain contingent (earn-out) payments under its merger agreement (MA) with GloNav (Seller).

However, in denying Seller's representative’s motion for summary judgment, the court...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.