Richards, Layton & Finger Avoids ISN Software’s Malpractice Suit

Richards, Layton & Finger PA, Delaware’s largest law firm, doesn’t have to face malpractice claims over advice that led ISN Software Corp. to botch its restructuring, a divided state Supreme Court ruled, finding the case time-barred.

The lawsuit concerned ISN’s transformation from a traditional “C corporation” into an “S corporation,” a type of “pass through” entity that conveys tax benefits.

The company sought advice from RLF about how to eliminate the stock appraisal rights of four shareholders that owned a combined 25% of ISN. An appraisal action is a Delaware-specific type of lawsuit—possibly an endangered species—that asks the ...