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Corporate Governance Derivative Suit Corporate Officers

Allen Matkins

Is Your Directors And Officers Liability Coverage Illusory?

Allen Matkins on

Many corporations pay significant amounts for directors and officers liability policies.  Commonly referred to as D&O policies, these policies usually involve three sides.  Directors and officers are likely to have the most...more

Allen Matkins

After More Than A Year, Questions Remain Regarding Caremark and Officers

Allen Matkins on

Last year, Vice Chancellor J. Travis Laster famously held that officers could be subject to liability under the Caremark doctrine.  In re McDonald’s Corp., 289 A.3d 343 (Del. Ch. Jan. 26, 2023).    The Caremark doctrine...more

JAMS

Mediating Complex Corporate Disputes Involving Officers and Directors

JAMS on

Claims against corporate officers and directors most commonly are derivative claims brought on behalf of a corporation or LLC in which the company is a nominal plaintiff. These claims allege that the defendants have breached...more

DarrowEverett LLP

Diversity Driven Derivative Suits: Culture Wars Come to the Boardroom

DarrowEverett LLP on

Traditionally deployed to protect a corporation from its board’s imprudent investment or financial decision-making, in recent years shareholders have taken to bringing derivative actions on a corporation’s behalf for its...more

Latham & Watkins LLP

California Court Adopts the Caremark Standard for Oversight Claims

Latham & Watkins LLP on

The decision articulates the standard for plaintiffs asserting derivative claims based on an alleged failure of oversight by directors and officers of California companies. Nearly three decades ago in the seminal case In...more

J.S. Held

Will Derivative Shareholder Litigation Be the New Firing Line for Ensuring Achievement of Corporate Sustainability Goals?

J.S. Held on

Mitigating climate change impacts is becoming a critical business priority, and the pressure to achieve corporate sustainability objectives is mounting as investment-focused regulations continue to drive companies toward...more

Patton Sullivan Brodehl LLP

California Supreme Court Sets Precedent – Unlike For-Profit Corporate Directors – Former Non-Profit Director May Maintain...

The California Supreme Court sets new precedent that unlike for-profit corporations, a former non-profit director may maintain a derivative lawsuit.  The decision increases the likelihood that decisions of boards of...more

Brownstein Hyatt Farber Schreck

Delaware Court Extends Fiduciary Duty of Oversight to Corporate Officers

For companies incorporated in Delaware (and beyond), it may be time to reexamine a number of issues impacting senior leadership from a variety of perspectives, including corporate governance, indemnification provisions,...more

Hicks Johnson

Landmark Ruling on Oversight Liability Creates New Risks for Corporate Officers

Hicks Johnson on

According to a recent decision handed down by the Delaware courts, corporate officers must now contend with a new avenue of liability: the duty of oversight. Previously, only a company’s board could face personal liability...more

A&O Shearman

Delaware Court Of Chancery Denies Motion To Dismiss Breach Of Fiduciary Duty Claim Against Director Who Abstained From Merger Vote

A&O Shearman on

On May 25, 2022, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery denied a motion to dismiss a stockholder derivative claim against a director of Fat Brands Inc. (the “Corporation”) for alleged breach of...more

Woodruff Sawyer

Looking Ahead: Expert Insights into the 2022 D&O Market

Woodruff Sawyer on

As predicted in last year’s Looking Ahead, D&O insurance rates continued to rise in 2021. However, there are early signs that the market is in transition and that some relief may be on the way. As documented in this year’s...more

A&O Shearman

Delaware Court Of Chancery Dismisses Derivative Claims Challenging A Convertible Debt Issuance At The Onset Of The COVID-19...

A&O Shearman on

On November 23, 2021, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery dismissed stockholder derivative claims for breach of fiduciary duty against the directors of Wayfair, Inc. (the “Company”). ...more

Proskauer - Minding Your Business

Delaware Chancery Holds Early Committee Appointment Necessary to Cleanse Conflict from Corporate Transactions

In Salladay v. Lev, the Delaware Chancery Court elaborated on how early a corporate board must take protective measures to shield a conflicted transaction from entire fairness review. Salladay involved a motion to dismiss a...more

McDermott Will & Emery

Court of Chancery Expands Stockholder Right to Corporate Books and Records

McDermott Will & Emery on

In a recent post-trial opinion, Vice Chancellor Laster of the Delaware Court of Chancery issued an important decision regarding stockholder books and records demands under Section 220(b) of the Delaware General Corporation...more

White and Williams LLP

The $29 Million Yahoo Derivative Data Breach Settlement: What Next?

White and Williams LLP on

On January 4, 2019 a federal district court in California approved a $29 million settlement in a shareholder derivative lawsuit against former Yahoo directors and officers regarding high-profile data breaches at Yahoo between...more

Katten Muchin Rosenman LLP

Delaware Chancery Court Permits Shareholder to Bring Fiduciary Claim for Board’s Violation of a Stock Incentive Plan

On November 8, the Delaware Chancery Court denied a motion to dismiss a derivative action brought by a shareholder of Healthways, Inc. against the company’s president, Ben Leedle, Jr., and the board of directors for approving...more

Brownstein Hyatt Farber Schreck

Email Users Beware: Companies and Corporate Officers Should Evaluate Email Practices in Light of Delaware Chancery Court Decision

On September 5, 2013, the Delaware Chancery Court ruled that the attorney-client privilege does not protect from disclosure emails sent by corporate officers to their personal attorneys using the company’s email account. In...more

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