Quadrant Structured Products Company, Ltd. v. Vertin
Delaware Chancery Court
115 A.3d 535 (2015)
- Written by Eric Miller, JD
Facts
Quadrant Structured Products Company, Inc. (Quadrant) (plaintiff) owned debt securities issued by Athilon Capital Corp. (Athilon) (defendant), a company that dealt in credit default swaps. Quadrant, which claimed that Athilon was insolvent, brought derivative claims for breach of fiduciary duty against individual members of Athilon’s board of directors (the board members) (defendants), including Vincent Vertin, in Delaware Chancery Court. Quadrant alleged that the board members switched from relatively safe investments to a risky business model for the purpose of transferring value from Athilon to EBF & Associates (defendant), the owner of Athilon’s equity and junior subordinated notes, which were underwater. Athilon, the board members, and EBF moved for summary judgment, asserting that Athilon was no longer insolvent and offering proof in the form of an audited balance sheet.
Rule of Law
Issue
Holding and Reasoning (Laster, J.)
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