In the Press
April 24, 2023

Cumming’s Take: Private Equity Windfall From Fox Defamation Case Likely Less Than It Appears (The Wall Street Journal)

Buyout firm Staple Street Capital scored a huge win this week with Dominion Voting Systems' defamation settlement from Fox Corp., the parent of Fox News. But the private-equity firm's take-home share of that sum is likely to be far smaller, reflecting the high upfront costs of major legal cases, said lawyers who specialize in private-equity litigation. "While this [settlement] is certainly welcome news for investors, it doesn't mean that they are getting an enormous profit that they would not have gotten but for Fox's alleged misconduct," said Carl Metzger, chair of the Risk Management & Insurance practice. Damages and legal fees aside, the settlement is still a big win for Dominion and its private-equity backers, Mr. Metzger said. "They still have reason to celebrate this result, and it would not surprise me if champagne corks are popping," he said to The Wall Street Journal.