The Delaware Court of Chancery’s recent decision in Tamer Hassanein v. NTO Fund I, et. al., has pointed out a rarely invoked provision of the Delaware LLC Act and Delaware LP Act with the potential to generate unwanted and hard-to-settle litigation. Drafters should strongly consider including prophylactic language in future operating agreements, or when amending existing agreements, to minimize litigation risk.
Read the full Alert on the Duane Morris LLP website.