Clients with major transactions routinely face shareholder and other litigation seeking to block or enforce a deal. As experienced and business-savvy litigators, we are able to fend off many such cases, often breaking new legal ground in the process.
CDK Global Defeats Motion to Enjoin $8.3 Billion Merger With Brookfield
- Client News
- July 5, 2022
Paul, Weiss secured the denial of a preliminary injunction motion seeking to halt the $8.3 billion merger between CDK Global, Inc. and Brookfield. The complaint, filed in Illinois state court, alleged that CDK and its directors made material misstatements or omissions in its Schedule 14D-9 Recommendation Statement to the SEC regarding Brookfield’s tender offer to CDK shareholders. The plaintiff also alleged that CDK failed to disclose certain purported conflicts of interest involving its senior management and financial advisor.
The court denied the motion for a preliminary injunction just hours before the tender offer deadline. The court agreed with Paul, Weiss’s arguments that the plaintiff had not shown irreparable harm if injunctive relief were not granted, that he had no adequate remedy at law, or that he was likely to succeed on the merits. The court held that CDK and Brookfield presented persuasive information that the corrective disclosures the plaintiff sought were neither necessary nor material to the transaction and did not form a basis to extend the tender offer deadline.
The Paul, Weiss team included litigation partner Geoffrey Chepiga and counsel Daniel Mason.