In Palkon v. Maffei, C.A. No. 2023-0449-JTL, 2024 Del. Ch. LEXIS 48 (Del. Ch. Feb. 20, 2024) (Laster, V.C.) the Delaware Court of Chancery considered whether a controlling stockholder’s approval of transactions...more
In Tola v. Bryant, No. 16150, 2022 Cal. App. LEXIS 241 (Cal. App. Mar. 24, 2022), the First Appellate District of the California Court of Appeal applied Delaware’s new formulation of the test for determining whether a...more
4/7/2022
/ Appeals ,
Appellate Courts ,
Board of Directors ,
California ,
Controlling Stockholders ,
Corporate Governance ,
DE Supreme Court ,
Delaware ,
Derivative Tort Claims ,
Securities Litigation ,
Standing ,
State and Local Government
Section 220 of the Delaware General Corporation Law, 8 Del. C. § 220 (“Section 220”), permits a stockholder of a Delaware corporation to inspect corporate books and records upon a showing of a proper purpose. The Delaware...more
Merger agreements involving acquisitions of private companies often contain terms creating post-merger obligations or “earnouts” in favor of certain classes of selling stockholders. To address potential claims that may arise...more
In Flood v. Synutra Int’l, Inc., No. 101, 2018, 2018 Del. LEXIS 460 (Del. Oct. 9, 2018), the Delaware Supreme Court (Strine, C.J.) held that a controlling stockholder who pursues a merger with the controlled company will have...more
10/18/2018
/ Aiding and Abetting ,
Breach of Duty ,
Bright-Line Rule ,
Business Judgment Rule ,
Buyouts ,
Class Action ,
Controlling Stockholders ,
DE Supreme Court ,
Due Care ,
Duty of Care ,
Fiduciary Duty ,
Mergers ,
Minority Shareholders ,
Motion to Dismiss ,
Shareholder Litigation