LVMH Says Tiffany's Handling of Pandemic Invalidates Merger
Jim Rosener, a partner in Troutman Pepper’s Corporate Practice Group, was quoted in a September 10, 2020 Wall Street Journal article titled, " LVMH Says Tiffany's Handling of Pandemic Invalidates Merger."
U.S. lawyers who aren’t involved in the case, said LVMH would have a hard time arguing that Tiffany was mismanaged during the pandemic.
“The Delaware courts have held that changes in business circumstances don’t constitute a material adverse change,” said James Rosener, a partner with the law firm Troutman Pepper. “Stuff happens in business and as long as it’s not permanent and sustained, it doesn’t constitute a material adverse change.”
If Tiffany prevails in court, LVMH could face damages in excess of the $575 million termination fee that Tiffany was allowed to pay to walk away from the deal, Mr. Rosener said.