In the recent decision of In re Ebix, Inc. S’holder Litig., Consol. C.A. No. 8526-VCN (Del. Ch. Jan. 15, 2016), the Court of Chancery examined certain board actions
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Derivative Actions
Court Grants Dismissal With Prejudice as to Named Derivative Plaintiff
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Under Court of Chancery Rule 15(aaa), in response to a motion to dismiss filed under Chancery Rule 12(b)(6) or 23.1, a plaintiff may file an amended complaint without leave in…
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Derivative Settlement Rejected Because of Unique Benefit Conferred Upon Named Plaintiff
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The Court of Chancery recently issued an opinion which reflects the perils when conferring upon a named plaintiff to a derivative action benefits unique from the shareholder class. In the…
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High Court Reverses Court of Chancery in Sanchez Derivative Litigaiton
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Earlier this month, the Delaware Supreme Court reversed a decision of the Delaware Court of Chancery in the matter of In re Sanchez Energy Derivative Litig., No. 702, 2014 …
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Derivative Suit Dismissed; Majority of Board Did Not Possess Substantial Risk of Personal Liability
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In the case of Harold Grill 2 IRA v. Louis R. Chênevert, et al., Civil Action No. 7999-CS (June 24, 2013), the Court of Chancery ruled upon a motion…
Derivative Action Dismissed by the Court Under the McWane Doctrine
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On February 28, 2013, the Court of Chancery, through its opinion of In re Diamond Foods, Inc. Derivative Litigation, C.A. No. 7657-CS (Del. Ch. Feb. 28, 2013), entered an…
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Arguably Poor Business Judgment, Without More, Does Not Excuse Demand In Derivative Action
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In the case of Freedman v. Adams, et al., No. 230, 2012 (Del. Supr., Jan. 14, 2013), the Delaware Supreme Court considered on appeal whether a derivative…
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COURT DENIES SECTION 220 SUIT FILED AFTER DERIVATIVE ACTION
By Sheldon Rennie on
In Central Laborers Pension Fund v. News Corporation, C.A. No. 6287-VCN (Del. Ch. Nov. 30, 2011), denied a shareholder’s petition for inspection of books and records under Section…
Continue Reading COURT DENIES SECTION 220 SUIT FILED AFTER DERIVATIVE ACTION
Double Derivative Actions: Court Applies Law of Country of Spanish Parent Company in Dismissing Complaint
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“‘In a double derivative action involving a wholly owned subsidiary, a stockholder plaintiff only must plead demand futility (or otherwise satisfy Rule 23.1) at the parent level.’ [However], where ‘the …