Ropes & Gray Litigation Team Obtains Dismissal without Prejudice for Bain Capital

In The News
September 23, 2014

On Sept. 23, a Ropes & Gray litigation team successfully obtained a dismissal without prejudice for Bain Capital of a federal action pending in Utah Myers v. Bain Capital. The complaint asserted constitutional claims and a number of tort claims arising out of Bain Capital’s ownership and alleged control of a health services company that owns and operates residential treatment facilities.  

The Ropes & Gray team focused its argument for dismissal on both the failure to plead an underlying violation against the portfolio company and on the failure of the complaint to plead sufficient facts to pierce the corporate veil standing between Bain Capital and the alleged acts of one of its portfolio companies. The court dismissed the claims against Bain Capital on both grounds, reaffirming the important legal protection against veil piercing that would otherwise expose private equity firms to liability for the acts of portfolio companies.