Del. High Court Rejects RAA Suit Over Due Diligence Costs

Law360, New York (May 21, 2012, 8:00 PM EDT) -- The Delaware Supreme Court ruled Friday that investment firm RAA Management LLC cannot sue Savage Sports Holdings Inc. to recoup $1.2 million in due diligence and negotiation costs after a $170 million deal to purchase the sporting equipment maker fell through.

In upholding a trial court's dismissal of the suit, the state high court rejected RAA's arguments that the lower court had erred in finding that a nondisclosure agreement protected Savage from fraud claims for withholding information about company liabilities.

RAA had argued that the agreement...
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