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September 27, 2021

27 September 2021

Bear Market For Plaintiffs’ Liquidity-Based Conflict Allegations

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In M&A litigation, plaintiffs’ lawyers see actual or perceived conflicts of interest as gold.  Conflict allegations can take many forms and arise in a variety of contexts: for example, a board member of a target company who is offered employment by the would-be acquirer, or a controlling stockholder who sits on both sides of a transaction.  Another common example, and the focus of this post, is a board member or stockholder whose financial interests are alleged to diverge from other stockholders because of a need or desire to quickly liquidate holdings (referred to as a “liquidity-based conflict”). (more…)