Focus Financial Partners

 

In April 2024, KTMC filed claims on behalf of the former public stockholders of Focus Financial Partners (“Focus”) in connection with the August 31, 2023, take-private acquisition of Focus (the “Merger”) by funds affiliated with Clayton, Dubilier & Rice, LLC (“CD&R”) and Stone Point Capital LLC (“Stone Point”). Plaintiffs alleged that four Focus officers and directors—Defendants Adolf, Kodialam, Carey, and Muhtadie—breached their fiduciary duties to Focus’ public stockholders by providing CD&R timing and informational advantages and failing to conduct a truly competitive sale process to maximize the potential Merger consideration paid to the public stockholders. Plaintiffs’ complaint also alleged that Focus’ public stockholders were not provided with material information indicating that a potential acquirer was iced out of the sale process. Plaintiffs further alleged that CD&R, Stone Point, and financial advisor Goldman Sachs & Co, LLC aided and abetted the Focus officers’ and directors’ breaches of fiduciary duty.

In mid-2024, Defendants moved to dismiss Plaintiffs’ complaint. On April 3, 2025, Chancellor McCormick converted Defendants’ motions to dismiss into motions for summary judgment with respect to Plaintiffs’ above-described disclosure claim. Plaintiffs are currently pursuing discovery from Defendants and related third parties in preparation for the upcoming summary judgment briefing.

KTMC’s case team includes Eric Zagar and Lauren Lummus.