How PE Firms Can Avoid Claims of Breach of Fiduciary Duty | McDermott

How PE Firms Can Avoid Claims of Breach of Fiduciary Duty

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Timothy Walsh and Darren Azman wrote this bylined article on fiduciary duty breach claims in private equity investment bankruptcies. In such claims, the authors wrote, “out-of-the-money investors look to mitigate losses and consider litigation to leverage a more favorable return,” which should make sponsors and their appointed directors of portfolio companies “keenly aware of directors’ fiduciary obligations and potential strategies for mitigating risk.”