In Del. Chancery, a cautionary tale of hacked M&A payouts

By Gail Weinstein, Brian Mangino and Maxwell Yim (May 10, 2022, 5:30 p.m. EDT) — When a legal advisor’s emails are hacked and a shareholder’s merger consideration is paid to the hackers, who is responsible? ? Take the April 1 decision Sorenson Impact Foundation v. Continental Stock Transfer & Trust Co..

Hackers intercepted email communications from a law firm involved in the $130 million merger – under which Tassel Parent Inc. acquired Graduation Alliance Inc.

Tassel, the buyer, is a subsidiary of private equity firm Kohlberg Kravis Roberts & Co. LP.

The hackers posed online as two of the real shareholders of Graduation Alliance, the target, and managed to get paid the merger consideration instead…

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