Question
Anthony and Philip Conway were the founders of a publicly traded medical device company called Rochester Medical Corporation (RMC). C.R. Bard Inc. negotiated to purchase
Anthony and Philip Conway were the founders of a publicly traded medical device company called Rochester Medical Corporation (RMC). C.R. Bard Inc. negotiated to purchase RMC, but prior to closing the transaction, C.R. Bards board require the eConnways to each sign a separate five-year non-concrete agreement. After the Conways executed the non-compete agreements, C.R. Bard paid shareholders a significant premium for their shares of RMC. The Conways regretted signing the non-compete agreements and filed a lawsuit stating that the agreements were invalid for lack of consideration. Were they correct?
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