McCarter secured a victory in the Delaware Court of Chancery on behalf of House of Lithium, Ltd., a private equity fund, in expedited litigation brought by plaintiffs Reby and Restanca. The dispute involved an alleged breach of a stock purchase agreement valued at almost $100 million, through which House of Lithium would purchase Reby’s business. In the suit, the plaintiffs claimed that House of Lithium was obligated to purchase all of Reby’s outstanding shares pursuant to a series of Secondary Sale Agreements. House of Lithium disputed the validity of the Secondary Sale Agreements and argued that they were procured by fraud, and contended that even if valid, the Secondary Sale Agreements were not enforceable. The plaintiffs sought an order compelling House of Lithium to proceed with the transaction, or alternatively, an award of money damages. In its June 30, 2023 opinion, the Court of Chancery sided with House of Lithium, finding that although the Secondary Sale Agreements were valid contracts, the plaintiffs had failed to satisfy the necessary conditions to closing, and as a result, House of Lithium was not obligated to proceed with the transaction.
The win is a significant victory for House of Lithium. A representative for the company noted, “House of Lithium is incredibly appreciative of our legal team at McCarter & English. We brought them a really complicated M&A dispute to take to trial, and with their skill and perseverance they delivered a great result.”
The McCarter team representing House of Lithium included partners Daniel Silver, Sarah Delia, and Travis Ferguson.