The Delaware Court of Chancery, in Agspring Holdco, LLC, et al. v. NGP X US Holdings, LP, et al., C.A. No. 2019-0567-AGB, memo. op. (Del. Ch. July 30, 2020), found contractual fraud claims brought by the buyer of a business against the seller well pled, including a claim that defendant fraudulently represented no Material Adverse Effects at closing despite knowledge of drastically reduced earnings.
NEW: $$$ Law360 discusses the decision in Chancery Ruling Highlights Fraud Claim Risk For PE Sellers.
K&L Gates discusses the decision in Chancery Court Rules on Agribusiness Sale Fraud Suit.
Morris James discusses the decision in Chancery Denies Sellers’ Request for Dismissal, Finding That Fraud Claims Were Timely Filed and Properly Pled.
Fried Frank discusses the decision in PE Seller May Have Liability for Portfolio Company’s Alleged Fraud in Concealing Steep Earnings Decline Post-Signing.
Kansas City Business Journal discusses the decision in Agspring founders lose effort to dismiss Delaware fraud case.
$$$ Law360 discusses the decision in Chancery Mostly Keeps Agribusiness Sale Fraud Suit Intact.