NACD Amicus Brief Regarding Shareholder Litigation Involving Rural/Metro Corp
On May 26, 2015, NACD filed an amicus brief regarding shareholder litigation involving Rural/Metro Corp. The brief was prepared by the law firm of Gibson Dunn & Crutcher LLP. Rural/Metro’s board was sued by shareholders for approving the sale of the company to the private equity firm Warburg Pincus LLP. In the brief, among other statements, NACD asserts that the Rural/Metro decision sets too high a bar for corporate directors when considering and approving merger transactions, while it undercuts directors’ ability to rely on expert advisors in M&A matters.