Publication Date: 2024-12-17
Practice Area: Corporate Governance
Industry: Health Care | Investments and Investment Advisory
Court: Court of Chancery
Judge: Vice Chancellor Will
Attorneys: For plaintiff: Srinivas M. Raju, Matthew D. Perri, Kyle H. Lachmund, Mari Boyle, Richards, Layton & Finger, P.A., Wilmington, DE; William Savitt, Sarah K. Eddy, Andrew J.H. Cheung, Brittany A. Fish, Daniel B. Listwa, Min K. Lobb, Wachtell, Lipton, Rosen & Katz, New York, NY; Matthew H. Lembke, Zachary Madonia, Savannah Kolodziej, Bradley Arant Boult Cummings LLP, Birmingham, AL for plaintiffs.
for defendant: Lewis H. Lazarus, Albert J. Carroll, Barnaby Grzaslewicz, Samuel E. Bashman, Morris James LLP, Wilmington, DE; John F. Hartmann, Gabor Balassa, Timothy W. Knapp, Britt Cramer, Kirkland & Ellis LLP, Chicago, IL; Kenneth J. Nachbar, Megan Ward Cascio, Alexandra M. Cumings, Morris, Nichols, Arsht & Tunnell LLP, Wilmington, DE; Bruce Sperling, Eamon P. Kelly, Sperling & Slater, LLC, Chicago, IL for defendants.
Case Number: 2022-0837-LWW
Although defendants were clearly liable for breaches of the duty of loyalty and aiding and abetting, because defendants' competing venture was not yet profitable, the appropriate remedy was to establish a constructive trust entitling plaintiffs to an equitable payment stream from any future gains defendants earned from their venture.