Kasowitz Defeats Kennedy Lewis’s Motion to Dismiss its Equity Claim on Behalf of John Brice

Kasowitz, on behalf of John Brice, has defeated a motion by New York-based private equity firm Kennedy Lewis Investment Management (“KLIM”) to dismiss his claim to a 15% equity stake in the firm.  In the lawsuit, which is pending before the Delaware Chancery Court, Brice alleges that KLIM refused to honor an agreement to grant Brice 15% equity in the firm in exchange for his initial $50 million investment in its first fund and acceptance of the role of Chairman of the firm.  According to the complaint, KLIM engaged in threats and intimidation tactics to coerce Brice into surrendering his equity interest in KLIM.  These alleged actions intensified after a Goldman Sachs affiliate purchased a minority stake in the firm that valued Brice’s equity position at over $150 million.  Brice previously succeeded on his motion to amend his complaint to include newly discovered evidence: an equity chart prepared by KLIM that confirms Brice’s entitlement to the 15% stake.  
 
In denying the motion to dismiss KLIM, the Court held that a prior attempt by KLIM to threaten Brice with forfeiture of his equity was “an unwise tactical power play,” and that Brice’s complaint “alleges facts from which it is reasonably conceivable that the Plaintiff did receive a 15 percent equity stake in KLIM in 2018” in exchange for his anchor investment into the fund and his taking on the role as KLIM's Chairman.  
 
The Kasowitz team representing Brice is led by partners Marc E. Kasowitz and Joshua D. Fulop, and includes associate Saddiq Abdul.