John Stigi III on Delaware General Corporation Law

Delaware Enacts Sweeping Changes to the Delaware General Corporation Law

On March 25, 2025, the governor of Delaware signed into law Senate Bill 21, over much opposition from the plaintiffs’ bar and some academics. The bill, which amends Sections 144 and Section 220 of the Delaware General...more

4/2/2025 / Acquisitions , Books & Records , Controlling Stockholders , Corporate Governance , Delaware , Delaware General Corporation Law , Fiduciary Duty , Mergers , New Legislation , Shareholder Litigation

The Delaware Court of Chancery Puts Practitioners on Notice Regarding Voting Formalities Around Merger Agreements

In Ap-Fonden v. Activision Blizzard, Inc., C.A. No. 2022-1001-KSJM, 2024 WL 863290 (Del. Ch. Feb. 29, 2024), the Delaware Court of Chancery (McCormick, C.) declined to dismiss a claim alleging that the Board of Directors of...more

3/6/2024 / Acquisition Agreements , Acquisitions , Board of Directors , Business Litigation , Delaware General Corporation Law , Merger Agreements , Mergers , Voting Requirements

Delaware Corporations Must Employ Procedural Safeguards When Approving a Reincorporation that Could Benefit a Controlling...

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

2/28/2024 / Controlling Stockholders , Corporate Governance , Delaware General Corporation Law , Fairness Standard , Incorporation

Ninth Circuit Enforces Delaware Forum Selection Clause to Affirm Dismissal of Derivative Claim for Alleged Violation of Section...

In Lee v. Fisher, No. 21-15923, 2023 U.S. App. LEXIS 13521 (9th Cir. June 1, 2023), the United States Court of Appeals for the Ninth Circuit, sitting en banc, affirmed the dismissal of a shareholder derivative complaint...more

6/14/2023 / Appeals , Breach of Duty , Delaware , Delaware General Corporation Law , En Banc Review , Fiduciary Duty , Forum Selection , Securities and Exchange Commission (SEC) , Securities Exchange Act of 1934 , Shareholders

Delaware Supreme Court Affirms the Use of Stockholders Agreements to Waive Appraisal Rights

In Manti Holdings, LLC v. Authentix Acquisition Co., Inc., No. 354, 2020, 2021 WL 4165159 (Del. Sept. 13, 2021), the Delaware Supreme Court issued an important opinion affirming the use of stockholders agreements by and among...more

9/29/2021 / Appraisal , Appraisal Rights , Bylaws , Corporate Counsel , DE Supreme Court , Delaware General Corporation Law , Section 262 , Shareholder Litigation , Stockholder Agreements

Delaware Court of Chancery Applies the Internal Affairs Doctrine to Deny Stockholder Inspection Rights Under a Foreign State’s Law

In Juul Labs, Inc. v. Grove, 2020 Del. Ch. LEXIS 264 (Del. Ch. Aug. 13, 2020) (Laster, V.C.), the Delaware Court of Chancery held that the “internal affairs doctrine” bars a stockholder of a Delaware corporation headquartered...more

8/23/2020 / Articles of Incorporation , Books & Records , Delaware General Corporation Law , Foreign Jurisdictions , Inspection Rights , Section 220 Request , Shareholder Litigation , Shareholders

Delaware Supreme Court Confirms That Federal Forum Provision Is Facially Valid, Reversing Court of Chancery

In Sciabacucchi v. Salzberg, No. 346, 2019, 2020 WL 1280785 (Del. Mar. 18, 2020), the Delaware Supreme Court reversed a Delaware Court of Chancery (Laster, V.C.) decision declaring invalid a federal forum selection provision...more

3/23/2020 / Bylaws , Charter , Delaware General Corporation Law , Forum Selection , Investors , Jurisdiction , Securities Act of 1933 , Securities Litigation

Delaware Court of Chancery Holds that a Stockholder’s Disagreement with a Board’s Business Judgment and Intent to Pursue a Proxy...

In High River Limited Partnership v. Occidental Petroleum Corp., C.A. No. 2019-0403-JRS, 2019 WL 6040285 (Del. Ch. Nov. 14, 2019) (Slights, V.C.), the Delaware Court of Chancery held that a stockholder’s mere disagreement...more

11/20/2019 / Board of Directors , Books & Records , Corporate Governance , Delaware General Corporation Law , Popular , Proxy Contests , Section 220 Request , Shareholders

Delaware Chancery Court Provides Useful Guidance for Protecting Pre-Merger Privileges in Post-Closing Litigation Between Buyers...

In Shareholder Representative Services LLC v. RSI Holdco, LLC, No. 2018-0517-KSJM, 2019 WL 2290916 (Del. Ch. May 29, 2019), the Delaware Court of Chancery reaffirmed that a target company may protect its pre-merger privileged...more

6/6/2019 / Acquisitions , Attorney-Client Privilege , Corporate Counsel , Delaware General Corporation Law , Merger Agreements , Mergers , Privileged Communication , Protective Orders , Selling a Business

Delaware Courts Address Production of Emails and Other Electronically Stored Information In Response to Section 220 Demands

UPDATE: On August 5, 2020, the Delaware Supreme Court summarily affirmed the judgment of the Court of Chancery “on the basis of and for the reasons stated in its January 25, 2019 opinion.” Section 220 of the Delaware...more

2/1/2019 / Books & Records , Burden of Production , Delaware General Corporation Law , Electronic Communications , Electronically Stored Information , Email , Investigations , Recordkeeping Requirements , Section 220 Request , Shareholder Litigation , Shareholders

Delaware Court of Chancery Declares Ineffective Exclusive Federal Forum Provision for 1933 Act Claims

In Sciabacucchi v. Salzberg, C.A. No. 2017-0931-JTL, 2018 WL 6719718 (Del. Ch. Dec. 19, 2018), the Delaware Court of Chancery (Laster, V.C.) held that a forum-selection provision in a Delaware corporation’s charter or bylaws...more

1/15/2019 / Bylaws , Certificates of Incorporation , Delaware General Corporation Law , Forum Non Conveniens , Forum Selection , Initial Public Offering (IPO) , Investors , Publicly-Traded Companies , Securities Act of 1933 , Securities Litigation

Delaware Court of Chancery Holds that Cancellation of Shares Through Merger Deprives Stockholder of Standing in Section 220 Action

In Weingarten v. Monster Worldwide, Inc., C.A. No. 12931-VCG, 2017 WL 752179 (Del. Ch. Feb. 27, 2017), the Delaware Court of Chancery (Glasscock, V.C.) clarified when a plaintiff has standing to vitiate inspection rights...more

3/10/2017 / Article III , Books & Records , Delaware General Corporation Law , Demand Letter , Equitable Estoppel , Inspection Rights , Merger Agreements , Motion to Compel , Section 220 Request , Shareholder Litigation , Shareholders , Standing , Stocks , Tender Offers

Delaware Court of Chancery Rejects Bylaw That Required Supermajority Stockholder Vote to Remove Directors in Violation of 8 Del....

In Frechter v. Zier, C.A. No. 12038-VCG, 2017 WL 345142 (Del. Ch. Jan. 24, 2017) (Glasscock, V.C.), the Delaware Court of Chancery granted plaintiff’s motion for summary judgment on a declaratory relief claim and held that 8...more

2/7/2017 / Breach of Duty , Bylaws , Declaratory Relief , Delaware General Corporation Law , Director Removal , Duty of Loyalty , Majority Shareholders , Majority Voting Policies , Summary Judgment

Delaware Chancery Court Rejects MBO Merger Price as Best Evidence of Fair Value in Appraisal Proceeding

In In re Appraisal of Dell Inc., No. 9322 VCL, 2016 Del. Ch. LEXIS 81 (Del. Ch. May 31, 2016) (Laster, V.C.), the Delaware Court of Chancery determined that the fair value of the common stock of Dell Inc. (“Dell” or the...more

6/10/2016 / Appraisal , Appraisal Rights , Board of Directors , Common Stock , Delaware General Corporation Law , Dell , Fair Market Value , Fiduciary Duty , Leveraged Buyout , Mergers , Voting Securities

Delaware Supreme Court Holds That a Stockholder Plaintiff Must Plead a Non-Exculpated Claim to Avoid Section 102(b)(7)-Based...

In the consolidated appeal In re Cornerstone Therapeutics Inc., Stockholder Litigation and In re Zhongpin Stockholders Litigation, Nos. 564, 2014 and 706, 2014, 2015 Del. LEXIS 231 (Del. May 14, 2015), the Delaware Supreme...more

5/22/2015 / Delaware General Corporation Law , Exculpatory Clauses , Freeze-Out Mergers , Independent Boards , Shareholder Litigation , Shareholders

Delaware Supreme Court Confirms Chancery Court’s Broad Authority to Impose Use Restrictions on Information Obtained From Section...

The Delaware Supreme Court reversed the Chancery Court’s decision that it lacked authority to impose the requested use restriction, noting that Section 220(c) authorizes the Chancery Court in the exercise of discretion to...more

1/7/2015 / Books & Records , Delaware General Corporation Law , Derivative Suit , Shareholder Litigation , Shareholders

John Stigi III

Sheppard Mullin Richter & Hampton LLP

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