Article: Illinois Circuit Court Reinforces Seventh Circuit's Limitation On Financial Advisors' Liability Under Fairness Opinions.(Case overview)

Three recent decisions, taken together, offer valuable guidance to financial advisors for avoiding liability when issuing financial opinions.

In a recent notable case, an Illinois circuit court enforced language in the engagement letter limiting the financial advisor's relationship, and thus liability, to its corporate client only. This decision follows two decisions by the U.S. Court of Appeals for the Seventh Circuit, affirming the principle that a financial advisor owes no duty to the stockholders of its corporate clients when issuing a fairness opinion, so long as such limitation on liability is explicitly stated in the contractual relationship.

Ron ...

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