Will RBC's Appeal Create "Open Season" for Bankers?

RBC's Appeal on Merger Ruling Has Banks Concerned
– The Wall Street Journal

The Wall Street Journal interviewed Manatt's H.H. Sean Wee, a partner in the firm's Corporate and Finance practice, for an article on RBC Capital Markets' appeal of a 2014 ruling that found its bankers pushed a client, Rural/Metro Corp, into an unfair sale in an effort to collect higher fees.

The Wall Street Journal reports that the ruling was a landmark finding against a bank for merger advice, and lawyers credit it with inspiring a slew of lawsuits accusing other financial advisers of errors or conflicts of interest that shortchanged stockholders.

If the decision is upheld, "the fear across the industry is that it will be open season" on bankers, said Wee.

Read the article here

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