Friedman Kaplan Attorneys Publish Article on Delaware Supreme Court Reversal of Decision Striking Down Restrictive Covenants

The Hedge Fund Law Report has published an article written by Friedman Kaplan partners Lance J. Gotko and Asaf Reindel describing the Delaware Supreme Court’s reversal of a recent Delaware Chancery Court decision (Ainslie v. Cantor Fitzgerald, L.P.) in which the lower court found unenforceable “forfeiture for competition” provisions and non-competition and non-solicitation covenants contained in a partnership agreement. The article discusses the reasoning behind the Delaware Supreme Court’s decision and practical considerations for fund managers in light of the most recent case law.

The full text of the article can be accessed below.

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• Hedge Fund Law Report - In Reversal, Delaware Supreme Court Enforces "Forfeiture for Competition" Conditions in Partnership Agreement