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El Pollo Loco Insider Trading Suit Tossed Out Of Del Court

ADVERTISEMENT El Pollo Loco Insider Trading Suit Tossed Out Of Del. Court Law360 (July 30, 2021, 8:18 PM EDT) The Delaware chancellor has tossed an investor lawsuit seeking derivative damages on behalf of restaurant chain El Pollo Loco over approximately $118 million in alleged insider trades, heeding a call to dismiss the suit by a special litigation committee set up by the company s board. Chancellor Kathaleen St. J. McCormick of the Court of Chancery on Friday cited a 1981 Delaware Supreme Court ruling in Zapata Corp. v. Maldonado in finding that the special litigation committee members were independent and conducted a reasonable investigation of the investors claims, despite the investors argument that the committee failed to adequately consider two related.

Breeder/Owner William Patterson Dies at 88

Breeder/Owner William Patterson Dies at 88
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Chancery Resolves Dispute Between Competing Special Committees, Finding Second Committee Could Not Voluntarily Dismiss Suit Brought By The First Committee Under The Zapata Framework | Morris James LLP

This decision addresses a matter of first impression arising out of a dispute pitting two special committees of the same company, WeCompany (“WeWork” or the “Company”), against one another over control of a lawsuit on the Company’s behalf. The lawsuit involved claims against the Company’s putative controlling shareholders, SoftBank Group Corp. and SoftBank Vision Fund (AIV MI) L.P. (together, “SoftBank”), for abandoning a multi-step agreement by which SoftBank committed to a $3 billion tender offer for WeWork’s shares in addition to providing equity and debt financing (the “Transaction”). The same two-member committee that negotiated the Transaction on the Company’s behalf (the “Transaction Committee”), initiated the lawsuit with the support of the Company’s management (including WeWork’s Chief Legal Officer) as well as the Company’s outside counsel, Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”)

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