New York Governor Andrew M. Cuomo has signed into law the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 (the “Act”), an act designed to prevent—until May 1, 2021—both evictions of residential tenants with financial or health-related hardships arising from the COVID-19 pandemic Continue Reading
FFCRA in 2021: Extended Mandates – NO; Extended Tax Credits – YES
The Families First Coronavirus Response Act (FFCRA) established two limited federal mandates to protect employees of employers with fewer than 500 employees who needed to be absent from work for reasons related to the COVID-19 pandemic. The Emergency Paid Sick Leave Act mandated two weeks of paid Continue Reading
Venture Capital & Emerging Growth Companies December 2020 Highlights
McCarter’s renowned Venture Capital & Emerging Growth Companies team empowers clients throughout the development cycle—from ideation to creation, capitalization, implementation, commercialization, and monetization. Though this has been a challenging year for many, we are thankful for our Continue Reading
Anatomy of a Term Sheet: Series A Financing (Q4 2020)
A key milestone in the lifecycle of many successful companies is obtaining financing from angel or venture capital investors. Often, entrepreneurs are less familiar with standard terms than the investors with whom they are working. To help guide them, McCarter partner Benjamin Hron authored “Anatomy Continue Reading
In NJ, Following Court Guidance in Drafting Arbitration Clauses
McCarter partner Bill Wallach writes in Law360 about following court guidance in drafting arbitration clauses. Bill notes that while the New Jersey Supreme Court has repeatedly observed that it is not its role to issue advisory opinions, the fact remains that in several of its recent rulings Continue Reading
Delaware Law Update: Arm’s-Length Bidders Can Enjoy “Sweet” Deals Alongside Controllers without Abiding or Abetting Breaches of Fiduciary Duty – Jacobs v. Meghji, et al.
The Court of Chancery dismissed claims of aiding and abetting breach of fiduciary duty and unjust enrichment against an investor that participated in an equity investment transaction alongside the company’s controlling stockholder. Concentrating on the investor’s status as an arm’s-length “bidder,” Continue Reading
New Jersey to Create Venture Capital Fund to Supercharge Investment into Early-Stage and Emerging Growth Companies in the State
The New Jersey Legislature has passed the New Jersey Innovation Evergreen Act, and New Jersey Governor Phil Murphy is expected to sign it into law in the coming days/weeks. Pursuant to the Act, the New Jersey Economic Development Authority (the NJEDA) will create a fund, called the New Jersey Continue Reading
Court of Chancery Grants Summary Judgment in Favor of Defendant on Contract Interpretation Claim, Finding Investor Rights Agreement Did Not Require Defendant to Seek Permission to Incur More Debt
The Delaware Court of Chancery’s decision in Searchlight CST, L.P. v. MediaMath Holdings, Inc., C.A. No. 2020-0652-SG (Del. Ch. Sept. 28, 2020), involved a contract dispute between MediaMath Holdings, Inc. (“MediaMath”) and its investor, Searchlight CST, L.P. (“Searchlight”), over the interpretation Continue Reading
Delaware Supreme Court Remains Committed to Precedent and the Importance of Process in Appraisal Actions
In the appeal of an appraisal decision—Bridge Leveraged Cap. Structures Fund Ltd., et al. v. Stillwater Mining Co., Case No. 427, 2019 (Del. Oct. 12, 2020), Montgomery-Reeves, J.—the Delaware Supreme Court approved the Delaware Court of Chancery’s reliance on the sale price as the most reliable Continue Reading
The Delaware Court of Chancery Defers to the State of Incorporation in Matters of a Company’s Internal Affairs
Sylebra Cap. Partners Master Fund, Ltd., et al. v. Perelman, et al., C.A. No. 2019-0843-JRS (Del. Ch. Oct. 9, 2020), Slights, V.C.—The Delaware Court of Chancery dismissed a plaintiff shareholder’s request for declaratory and injunctive relief related to the defendants’ purported denial of certain Continue Reading