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Recurring Themes in Covid-19 “Busted Deal” Litigation  

Author:  Silpa Maruri.; Owen Roberts.

Source: Volume 54, Number 16, September 15 2021 , pp.189-195(7)

Review of Securities & Commodities Regulation

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Changes in circumstances wrought by COVID-19 have resulted in a profusion of “busted deal” litigation. The authors discuss this litigation. They begin with a brief overview of common contract provisions at issue and then turn to the two cases that have been resolved by the Delaware Chancery Court after virtual trials. The provisions they discuss are material adverse effect representations, ordinary course covenants, reasonable best efforts obligations, financing arrangements, and specific performance.

Keywords: Material Adverse Effect (MAE) Representations; Reasonable Best Efforts Obligations; Snow Phipps; AB Stable

Affiliations:  1: Quinn Emanuel Urquhart & Sullivan, LLP; 2: Quinn Emanuel.

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