Over the last few years high-profile age discrimination lawsuits have rocked the tech industry – perhaps not surprising as the average tech-worker is 5 years younger than the average non-tech worker. (State of Startups). Big names like IBM, Google, and HP have been on the defensive end of many of these claims, ultimately paying out millions in settlements (Gurchieck, SHRM; Riggio, DiversityInc). Most notably, IBM was the subject of a rare multi-year Equal Employment Opportunity Commission (“EEOC”) investigation that found more than 85 percent of redundancy and rolling layoffs impacted older employees, age 40 or older, between 2013-2018 (Dorrian, Bloomberg Law; Callaham, Forbes). The investigation confirmed a pattern of systemic age discrimination, where IBM pre-selected older employees for layoffs and had managers alter their performance evaluations to justify their firing, giving adversely impacted former employees a strong basis to file age discrimination claims (Dorrian, Bloomberg Law).
Read MoreThe ongoing pandemic has negatively impacted the global market in nearly every sector and has led many companies to file for bankruptcy. For example, Hertz Global Holdings Inc. thrived as a car-rental company before the pandemic broke out but now is on the verge of bankruptcy. (Brickley, Wall Street Journal). Despite filing for Chapter 11 bankruptcy in May, Hertz intends to hand out $14.6 million in bonuses to executives after having already paid out $16.2 million in a similar fashion. Id. This type of “retention” bonus was rare before the economy recently turned downward, but a spike in these bonuses could lead to an influx of novel bankruptcy claims from creditors. Id.
Read MoreIn 2017, Cigna, Corp. (“Cigna”) and Anthem, Inc. (“Anthem”), both major market participants in the United States (“U.S.”) healthcare industry, began what would have been a $54 billion merger. (Jeff Montgomery, Law 360). The merger between these entities ultimately failed in Delaware’s Chancery Court when Judge J. Travis Laster, who oversaw the trial in 2019, ruled that neither entity could recover damages for breach of contract as a result of the failed merger because of executive battles, unfulfilled contract obligations, and questionable conduct. Id. This article will address what happened during the failed Cigna-Anthem merger, why the court denied damages, the reasons the merger failed, and the effect that the failed merger will have on the mergers and acquisitions (“M&A”) market moving forward.
Read MoreCOVID-19 has had a monumental impact on most of the U.S. and global economy. The travel industry has been especially hit hard by the COVID-19 pandemic. With governmental health guidelines and restrictions in place, fewer individuals are traveling and more businesses have moved to operating remotely. As a result, travel companies are finding it difficult to acquire the capital required to close deals and to adhere to contractual obligations. This article will address a recent failed deal between two companies, how the Delaware court handled the issue, and what attorneys can do to prevent potential COVID-19 related problems.
Read MoreOn January 16, 2020, healthcare technology conglomerate Boston Scientific Corp. (NYSE BSX) entered a notice to appeal the Delaware court decision that ordered the completion of a $275 million acquisition of medical device company Channel MedSystems Inc. (“Channel”) (Mike Leonard, Bloomberg Law). The court’s decision comes despite Channel’s previous submissions of falsified records to the Food and Drug Administration (“FDA”). Id.
Read MoreFollowing years of negotiations and various roadblocks, the Sprint and T-Mobile merger cleared its last big hurdle in federal court last month. (Laurel Wamsley, NPR) The “mega-merger” was announced in April 2018 but faced immediate backlash. The attorney generals of New York, California, the District of Columbia, and ten other states protested the potential merger as an anti-competitive practice. (Laurel Wamsley, NPR) The states argued the reduction of carriers in the telecom market creates less market competition, limits fair and free choice for consumers, and harms workers in this industry. (Id.)
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