PSD Gets New York Private Equity Fund Out of North Carolina Action
On February 9, 2018, the Business Litigation session in Charlotte, North Carolina dismissed all claims against a New York private equity fund, represented by PSD, arising from allegations brought by a software company as it was trying to enter the healthcare services market. In a 47-page opinion, the court found that, despite the fund’s stated objective to invest in a roll-up of North Carolina businesses, the actual investment in a North Carolina holding company, and the roll-up of North Carolina businesses, the plaintiff failed to prove a basis for personal jurisdiction in North Carolina over the fund. The court also dismissed most of the claims against a related management company, expressing skepticism and serious questions about the viability of the remaining claims in light of the evidence the court reviewed on the personal jurisdiction issues. The plaintiff in this matter remains subject to contract claims by the management company pending in New York Supreme Court. PSD attorneys Barry Pollack, Peter Duffy and Eric Baginski worked on the motions.