Private equity firms risk losing key advantage in legal scrapes

A pair of little-noticed court cases are stoking anxiety at US buyout firms, with experts saying they could pave the way for hefty payouts in legal scrapes over some of the industry’s most controversial practices.

That’s because the lawsuits are spilling out of the New York bankruptcy court and Delaware Chancery Court — private equity’s long-preferred legal enclaves for settling its disagreements quietly. READ MORE