Richards Layton & Finger

Jury Awards $82.1 Million in Damages for Fraudulent Inducement in M&A Transaction

August 7, 2019

On June 24, 2019, Judge Carpenter (formerly one of the four CCLD panel members) concluded a jury trial in Bracket Holding Corp. v. Express Scripts, Inc., C.A. No. N15C-02-233 WCC CCLD. The genesis of the instant dispute began in 2012 when Express Scripts, Inc. expressed interest in acquiring United BioSource LLC. In 2013, Parthenon Capital Partners, a private equity fund, formed Bracket Holding Corp. to facilitate the acquisition. The transaction closed on August 15, 2013. Thereafter, Bracket filed litigation alleging that United BioSource and Express Scripts fraudulently induced Bracket to purchase the company by providing falsely inflated financial information. After a two week trial, the jury agreed with Bracket and awarded Bracket $82.1 million as damages for the fraud resulting in the inflated price.

Analysis: This case highlights the significant M&A disputes that are often litigated in the CCLD. Since its creation in May 2010, the CCLD has become a preferred venue for litigating M&A disputes involving claims of fraud.

Related Practices