New York Times (March 1)
2021/ 03/ 01 by jd in Global News
Four decades of private equity “financial bonanza” may be coming to an end after Judge Jed Rakoff ruled that “the former directors and officers of Jones Group could be held liable for approving the [highly leveraged] sale of the company, since it later went bankrupt.” Going forward, “officers and directors had better think twice before agreeing to sell a company to a buyout firm. What had for decades been considered a virtue — selling a company for a market-clearing price to the benefit of existing shareholders — might have become a vice.”
Tags: Bankrupt, Buyout firm, Directors, Financial bonanza, Jones Group, Leveraged, Liable, Market clearing, Officers, Private equity, Rakoff, Sell, Shareholders, Vice, Virtue
