Schulte Roth & Zabel lawyers Douglas Koff, Charles Clark, Derek Lacarrubba and J. Eric Prather published a Bloomberg Law article titled, “Investment Adviser Conflicts Under the SEC’s New Enforcement Paradigm,” in which they discuss the SEC’s return to an aggressive enforcement posture, including increased scrutiny of accelerated monitoring fees and other long-standing and widespread industry practices. They also noted that advisers should not assume their current compliance practices will be sufficient to satisfy these new regulations and enforcement mechanisms.

Schulte Roth & Zabel partner Ele Klein was quoted by Barron’s reporter Luisa Beltran regarding the lawsuit brought by Twitter against Elon Musk to prevent him from backing out of his acquisition deal.

“Twitter appears to have the stronger argument under current case law,” said Ele. “The courts are unlikely to be sympathetic to [Musk’s] argument” absent “demonstrating something more substantial in litigation.”

Read the article here.

In “Seventh Circuit Bars Bad Faith Asset Buyer Protection,” an article published in the June 2022 edition of The Bankruptcy Strategist, Michael L. Cook discusses how purchasers enjoy strong protections under the Bankruptcy Code, as long as they are acting in good faith.  

“Good-faith purchasers enjoy strong protection under [Bankruptcy Code (“Code”)] § 363(m),” but the silent asset buyer (“B”) with “actual and constructive knowledge of a competing interest” lacks “good faith,” held the U.S. Court of Appeals for the Seventh Circuit on April 4, 2022. Archer-Daniels-Midland Co. (“ADM”) v. Country Visions Cooperative, 2022 WL 998984 (7th Cir. Apr. 4, 2022). Affirming the lower courts’ denial of B’s motion to enforce a “free-and-clear sale” provision in a plan confirmation order, the Seventh Circuit cited the bad faith of both the debtors and B, the asset purchaser.