Quadrant Structured Products Company, Ltd. v. Vertin
Delaware Court of Chancery
102 A.3d 155 (2014)
- Written by Alex Ruskell, JD
Facts
Athilon Capital Corp. (Athilon) (defendant), a Delaware corporation, sold credit-default swaps. Quadrant Structured Products Company, Ltd. (Quadrant) (plaintiff) bought securities issued by Athilon. The credit-derivative industry collapsed, and Athilon’s securities traded at deep discounts because of the widely held belief that Athilon was insolvent. In response, Athilon’s board of directors transferred value to EBF & Associates (EBF), which then took over the board and tried to increase Athilon’s value. Quadrant sued, arguing that Athilon was insolvent and could not return to solvency. Because of these facts, Quadrant claimed that a well-motivated board would maximize Athilon’s value for creditors by minimizing expenses during runoff, liquidating Athilon, and returning Athilon’s capital to investors. Athilon argued that its decisions were protected by the business-judgment rule and moved to dismiss.
Rule of Law
Issue
Holding and Reasoning (Laster, J.)
What to do next…
Here's why 820,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 989 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
