Verdesian, Paine Schwartz Defeat Merger Fraud Claims After Trial

Paine Schwartz Partners LLC, the former private equity sponsor of Verdesian Life Sciences LLC, and former members of Verdesian’s board of managers defeated claims alleging they defrauded investors during the acquisition of a fertilizer enhancement company Wednesday after a trial.

The plaintiffs’ theory “defies logic and common sense” because it “rests on the notion that the defendants took action contrary to their own economic interests by personally investing in a transaction they knew would fail,” Vice Chancellor Bonnie W. David of the Delaware Chancery Court said. She entered judgment for the defendants after a five-day trial in September. ...