Are Legal Disputes Looming for Private Equity?

Aaron Marks and Marcus Thompson are quoted regarding a potential increase in private equity disputes in the possibility of an economic downturn.

Aaron discussed litigation risk associated with liability management transactions and restructurings, including saying: “We see cases where noteholders allege that they have either lost their ability as the result of a company transaction to be able to access the security for their notes or that they otherwise have had their rights impinged, and they bring lawsuits to either try to block those transactions or accelerate on their notes. The private equity sponsor is often named as a defendant in the case by the noteholders, so sponsors therefore have to be conscious of that risk.”

Marcus was quoted regarding various risk management issues, saying: “We are advising clients on wider risk management issues for sponsors and portfolio companies, where there is a continuing focus on anti-money laundering, anti-bribery and corruption and economic sanctions, and a growing emphasis on cyber-risk and the management of data, particularly if it’s personal data, and workplace compliance and #MeToo.”

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