As a litigator, I regularly encounter clients who have invested in a limited partnership and are outraged at the actions of the general partner and its principals.  Most of the time, they believe the general partner has mismanaged the partnership.  Not infrequently, they contend that the general partner represented that the partnership would invest in one category of asset when in fact, it invested in something else.  Unfortunately, these clients often face an uphill battle should they wish to sue to recover their investments.  These situations underscore a key point of investment diligence: read your partnership agreement carefully and assume it means what it says, particularly if it is governed by Delaware law.
Continue Reading Investment Diligence: Why Your Delaware Partnership Agreement Means What It Says