Delaware Supreme Court Affirms “Narrow” Rural/Metro Ruling; Declines to Characterize Sell-Side Financial Advisors as “Gatekeepers”

1 December 2015
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Key takeaways

  • Delaware Supreme Court affirms $75 million award against sell-side financial advisor for aiding and abetting breach of fiduciary duty by target directors.
  • Court describes its decision as “narrow,” based on “unusual facts,” and not an expansion of existing Delaware law.
  • Court rejects trial court’s characterization of financial advisors as “gatekeepers” and emphasizes the contractual nature of the advisor/client relationship.