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RBC Judge Finds Conflicts Tainted Rural/Metro Buyout

Royal Bank of Canada officials’ conflicts of interest tainted a $438 million buyout of Rural/Metro Corp. and the national ambulance service’s former investors deserved more for their shares, a judge ruled.

Bankers at RBC Capital Markets misled Rural/Metro directors in 2011 about the company’s value to push the board into a quick sale to buyout firm Warburg Pincus LLC, Delaware Chancery Court Judge Travis Laster concluded in a ruling. RBC officials also didn’t tell directors they were touting their financial-adviser work on the deal to secure financing roles on other acquisitions, the judge said.