JPMorgan Chase and Morgan Stanley are fighting shareholder lawsuits in Delaware Chancery Court accusing them of facilitating undervalued private equity buyouts. JPMorgan’s case involves the $1.4 billion acquisition of Snap One Holdings Corp. by Hellman & Friedman, while Morgan Stanley’s case concerns the $1.5 billion purchase of Couchbase Inc. by Haveli Investments. Shareholders allege both banks had conflicts of interest due to their prior relationships with the acquirers, compromising their ability to negotiate the best price for the companies being sold. Amendments to Delaware corporate law enacted in early 2025 created a safe harbor for directors but not for financial advisers, exposing banks to greater liability for aiding and abetting claims in breach of fiduciary duty cases.
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