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Buyer Potentially Liable for Earnout Even Though it had Right to Operate Target in its Discretion | Stinson - Corporate & Securities Law Blog

In Shareholder Representative Services LLC v Albertsons Companies, Inc., the aggrieved former shareholders of DineInFresh, Inc., d/b/a Plated, sought recovery of earnout consideration from Plated’s acquirer, Defendant, Albertsons Companies, Inc.  Plated had failed to reach any of the earnout milestones set forth in the Merger Agreement and Albertsons, therefore, refused to make any earnout payments. In the Merger Agreement, Albertsons had bargained for the right to operate Plated post-closing in its discretion.  However, the foregoing right was limited by Albertson’s express commitment not to operate Plated in a manner intended to avoid the obligation to pay the earnout.

Chancery OKs Keker Van Nest $19 6M Fee In Shire Ruling

ADVERTISEMENT ADVERTISEMENT Chancery OKs Keker Van Nest $19.6M Fee In Shire Ruling Law360 (April 27, 2021, 11:08 PM EDT) The Delaware Chancery Court Tuesday handed pharmaceutical company Shire a $19.6 million legal bill to cover a contingency fee owed to Keker Van Nest & Peters LLP after shareholders of a company Shire acquired won a dispute over a $45 million merger earnout. Vice Chancellor Kathaleen S. McCormick swept aside Shire US Holdings Inc. s objections that the fee was excessive, noting that plaintiff Shareholder Representative Services LLC which represented stockholder claims to post-merger payments retained Keker Van Nest on a contingent fee basis because it was running out of cash needed to press what proved to be a winning.

RELAY THERAPEUTICS, INC  : Entry into a Material Definitive Agreement, Results of Operations and Financial Condition, Unregistered Sale of Equity Securities, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)

On April 15, 2021, Relay Therapeutics, Inc. (the Company ) entered into an Agreement and Plan of Merger (the Merger Agreement ) by and among the Company, Elixir Merger Sub I, Inc., a Delaware corporation and a wholly-owned direct subsidiary of the Company ( First Merger Sub ), Elixir Merger Sub II, LLC, a Delaware limited liability company and a wholly-owned direct subsidiary of the Company ( Second Merger Sub and together with First Merger Sub, the Merger Subs ), ZebiAI Therapeutics, Inc., a Shareholder Representative Services LLC, a Colorado limited liability company, solely in its capacity as the representative of the ZebiAI Holders (as defined below). Subject to the satisfaction or waiver of the conditions set forth in the

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