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Supreme Court of Delaware Affirms Dismissal of Consolidated Shareholder Litigation

10.05.15
On October 2, 2015, the Supreme Court of Delaware affirmed the Chancery Court’s dismissal of consolidated shareholder litigation arising out of the 2014 acquisition of KKR Financial Holdings LLC (“KFN”) by KKR & Co. L.P. (“KKR”). The Delaware Supreme Court ruled that plaintiffs had failed to plead facts supporting an inference that KKR was a controlling stockholder of KFN. The Delaware Supreme Court further ruled that the business judgment rule applies in a post-closing damages action when a merger that is not subject to entire fairness review has been approved by a fully informed, uncoerced majority of disinterested stockholders. Paul Curnin, Pete Kazanoff, Janet Gochman, Andrew Podolin, Deborah Frankel and Will Pilon represented KKR in this matter.