Question

In 1999, Andreas Halvorsen, David Ott, and Brian Olson formed a hedge fund, Viking Global Investors LLC. The LLC's written agreement provided that the three founders would operate Viking, and divide all of its profits annually. If any one of them left Viking, he would receive only his capital account balance and earned compensation that had accrued and not been paid. In August 2005, the LLC management committee terminated Olson's membership in the LLC because the returns on his portfolio of investments were disappointing. The LLC bought out Olson by returning the amount in his capital account and paying his 2005 compensation, which amounted to over $ 100 million. Olson sued the LLC and the other members alleging that subsequent to executing the written agreement, they had agreed orally to pay the fair market value of a member ' s interest upon his leaving the LLC. He also argued that Delaware's LLC statute required payment of fair value. Did the court agree with Olson?



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  • CreatedJuly 16, 2014
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