October 11, 2024
Willkie has been recognized by The AmLaw Litigation Daily with a “Shout Out” for its victory for private equity client CCMP Capital Advisors, LP in a securities litigation case that further establishes the growing case law that private equity sponsors cannot be held directly liable even when they own equity and appoint directors.
The public pension fund plaintiff brought securities fraud claims against pool equipment company Hayward, and its PE sponsors, including CCMP, alleging that Hayward made false or misleading statements regarding its inventory and distribution channels, and CCMP could be held directly liable for Hayward’s alleged misstatements and that CCMP controlled Hayward and could therefore be held secondarily liable as a “control person.”
The Court rejected all of plaintiff’s arguments, and dismissed direct liability claims against CCMP with prejudice, holding that although CCMP-affiliated funds owned equity in Hayward and appointed directors to Hayward’s board, CCMP wasn’t the “maker” of Hayward’s statements under the SCOTUS decision Janus Capital Group, Inc. v. First Derivative Traders.
Learn more about the case here.
The Willkie team was led by partner Tariq Mundiya, counsel Joshua Levy and law clerk Matthew Davis.
The public pension fund plaintiff brought securities fraud claims against pool equipment company Hayward, and its PE sponsors, including CCMP, alleging that Hayward made false or misleading statements regarding its inventory and distribution channels, and CCMP could be held directly liable for Hayward’s alleged misstatements and that CCMP controlled Hayward and could therefore be held secondarily liable as a “control person.”
The Court rejected all of plaintiff’s arguments, and dismissed direct liability claims against CCMP with prejudice, holding that although CCMP-affiliated funds owned equity in Hayward and appointed directors to Hayward’s board, CCMP wasn’t the “maker” of Hayward’s statements under the SCOTUS decision Janus Capital Group, Inc. v. First Derivative Traders.
Learn more about the case here.
The Willkie team was led by partner Tariq Mundiya, counsel Joshua Levy and law clerk Matthew Davis.
