At the time of The Lawyer’s last US Special Report (20 August), the US private equity market was, as they say, going like a train. How things change.
In this latest US Special Report we examine one of the highest-profile effects of this summer’s credit crunch, the increasing levels of deal-related litigation. Specifically, we analyse the technique known as ‘calling a MAC’.
Several multibillion-dollar deals have cratered since the summer. One in particular, JC Flowers & Co’s $25bn (£12.1bn) bid for Sallie Mae, is heading for court after the private equity house claimed the summer’s events, coupled with a legislative change, had materially adversely changed the economic rationale for the deal.
Elsewhere there was disturbing news in the US after a string of Chinese products were recalled on safety grounds. This report examines the legal issues for distributors and the hurdles they face should they decide to sue manufacturers in the Far East.