How PE Firms Can Avoid Claims of Breach of Fiduciary Duty



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.”