COVID-19: Stock Repurchase Considerations in Light of COVID‑19

On March 26, 2020, Cravath prepared a resource for clients entitled “Stock Repurchase Considerations in Light of COVID‑19,” which provides an overview for issuers contemplating stock repurchase of factors that are of increased importance due to the pandemic. These include potential restrictions on repurchases (i.e., can you repurchase), fiduciary considerations (i.e., should you repurchase) and best practices for repurchase (i.e., how you should repurchase). Other considerations reviewed include disclosure requirements and listing rules. The resource concludes by noting that companies considering stock repurchases must consider the full range of risks and benefits in context of changes wrought by the COVID‑19 outbreak and measures taken in response to it.

Please click here to read the resource.