Faruqi & Faruqi, co-Lead Counsel, Obtains a Significant Victory on Behalf of Investors Against Comverge Inc.’s Former Board of Directors

On October 31, 2016, the Honorable Tamika Montgomery-Reeves, Vice Chancellor of the Delaware Court of Chancery, denied a motion for summary judgment filed by the former board of directors (the “Board”) of Comverge Inc. (“Comverge”).  In denying summary judgment, the Court found that there were material facts in dispute regarding whether Comverge’s shareholders were fully informed in approving the acquisition of Comverge by H.I.G. Capital, LLC’s (“H.I.G.”) in May 2012.  The Court also found that “a fuller development of the facts should serve to clarify the law or help the Court determine” whether certain debt-related agreements between Comverge and H.I.G. were, as a matter of law, unreasonable deal protection devices agreed to by the Board in bad faith.

The case is set for a three-day trial commencing on December 13, 2016.