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Delaware Is Increasingly No Longer a Safe Bet for Restrictive Covenants and Default Choice of Law Provisions

It’s no secret that employee non-compete — and, to a related extent, non-solicitation — restrictions are increasing disfavored and targeted across the U.S., both on a federal and state level. We’ve recently written about the...more

Delaware Court of Chancery Expands Duty of Oversight to Corporate Officers

Delaware law has long recognized a director’s duty of oversight. The well-established doctrine, first articulated in 1996 in In Re: Caremark International Inc. Derivative Litigation, was recently expanded to officers in In re...more

Revaluing Assets and Liabilities When Paying Dividends or Repurchasing Shares – Delaware Provides New Guidance for Boards

Boards of directors often seek to return cash to stockholders in the form of dividends or stock buybacks. Both methods are common for public companies, and in a private equity-backed company, owners frequently recapitalize...more

Forum Selection Clause Not Enforced and Parties May Seek Relief in Alternate Forums Due to COVID-19

The Delaware Court of Chancery recently ruled that it could adjudicate claims subject to a New York forum selection clause, where the New York courts’ coronavirus-inspired operating procedures precluded litigating the case in...more

Delaware Authorizes Remote Stockholder Meetings in Response to COVID-19

Responding to the needs of publicly traded corporations navigating the COVID-19 epidemic, Delaware Gov. John C. Carney issued a modified State of Emergency Order (the Order) authorizing public companies to conduct stockholder...more

A Director’s Mission: Understanding, Monitoring and Accurately Reporting Mission Critical Operations

On October 1, 2019, the Court of Chancery rendered an opinion in In re Clovis Oncology, Inc. Derivative Litigation, denying a motion to dismiss a Caremark claim for breach of fiduciary duty and reinforcing a director’s duty...more

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