CDX Liquidating Trust v. Venrock Associates

POSNER, Circuit Judge.

This suit, brought by a trust that holds the common stock of a bankrupt company formerly known as Cadant, charges several former directors with breaches of their duty of loyalty to the corporation, and charges two venture-capital groups, which we’ll abbreviate to “Venrock” and “J.P. Morgan,” with aiding and abetting the disloyal directors. Trial was bifurcated. Seven weeks into the trial on liability the plaintiff rested and the defendants then moved for judgment as a matter of law. The district judge granted the motion with a brief oral statement of reasons,…