Private Equity Sellers Find Comfort In Morton's Ruling

Law360, New York (August 21, 2013, 4:17 PM EDT) -- A private equity firm's desire to wind down an old fund to help raise a new one isn't, by itself, a conflict of interest, according to a recent Delaware Chancery Court ruling that should reassure an industry seeking exits from hundreds of boom-era investments.

In litigation over Morton's Restaurant Group Inc.'s sale, Chancellor Leo E. Strine, Jr. rejected the argument that the steakhouse chain's private equity backer, Castle Harlan Inc., put its liquidity needs above the rights of all shareholders to get a fair price....
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