Whether a claim against company management is direct or derivative is not infrequently disputed in litigation before the Delaware Court of Chancery. This determination becomes important in many contexts, including
Continue Reading Chancery Rules that Claims against General Partner are Direct, Allows Action to Proceed Despite Partnership’s Bankruptcy
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Double Derivative Actions: Court Applies Law of Country of Spanish Parent Company in Dismissing Complaint
By Fox Rothschild LLP on
“‘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 …