Secured $89.4 million settlement and reshaped Wall Street lending practices in landmark investment banker conflict case
Plaintiff(s):
Shareholders of Del Monte Foods Company
Case type / claims:
Shareholder litigation alleging breaches of fiduciary duty and investment banker conflicts of interest arising from the sale of Del Monte Foods to a private equity consortium. Plaintiffs challenged the fairness of the sale process and the role of Barclays Capital, which advised Del Monte while simultaneously seeking to finance the acquisition.
Defendant(s):
Del Monte Foods Company Board of Directors and Barclays Capital
Jurisdiction:
Delaware Chancery Court
Year:
2011
Outcome:
- $89.4 million settlement against Del Monte and Barclays Capital.
- Court enjoined the shareholder vote, the merger agreement’s termination fee, and other mechanisms designed to deter competing bids.
- Decision triggered sweeping reforms in investment banking policies regarding conflicts of interest in M&A financing.
