The Justice Insiders Podcast: Meet the Securities and Exchange (and Human Resources) Commission
In Rice Enterprises LLC v. RSUI Indemnity Co., the Third Circuit Court of Appeals affirmed the district court’s finding that the insured was not entitled to coverage from its employer’s liability insurer or its umbrella...more
On February 22, 2023, U.S. District Judge Victor Marrero of the Southern District of New York denied a motion to dismiss a putative class action brought by purchasers of a non-fungible token (NFT) against Dapper Labs, Inc....more
In a recent decision, the Delaware Court of Chancery determined for the first time that corporate officers owe a duty of oversight under Delaware Law. The case, In re McDonald’s Corporation Stockholder Derivative Litigation,...more
The Court of Chancery recently dismissed claims for breach of fiduciary duty, breach of the duty of oversight, and waste against the board of directors of McDonald’s Corporation. In In re McDonald’s Corp. Stockholder...more
On March 1, 2023, in In re McDonald’s Corporation Stockholder Derivative Litigation, Vice Chancellor Travis Laster of Delaware’s Court of Chancery granted a motion to dismiss derivative claims against McDonald’s directors...more
In a significant and far-reaching development in Delaware corporate law, the Delaware Court of Chancery recently held in In re McDonald’s Corporation Stockholder Derivative Litigation, C.A. No. 2021-0324-JTL (Del. Ch. Jan....more
Just last year, in assessing the extent to which a director has a duty to oversee a corporation’s business affairs, the Business Court noted the “limited guidance” afforded by state statutes and case law. In Lee v. McDowell,...more
In former Chancellor Allen’s hallmark decision in In re Caremark International, Inc. Derivative Litigation, the Delaware Court of Chancery held that directors of a corporation owe stockholders the fiduciary duty of oversight....more
In a far-reaching decision with significant implications, the Delaware Chancery Court recently issued a decision confirming that Caremark duty of oversight obligations extends to senior officers. This will have an immediate...more
Last year, we discussed how stockholder complaints concerning environmental, social, and governance (“ESG”) issues were making their way to the courtroom and, specifically, how the Delaware Court of Chancery and Supreme...more
On January 25, 2023, the Delaware Chancery Court issued its ruling in In re McDonald’s Corporation Stockholder Derivative Litigation, C.A. No. 2021-0324-JTL (Del. Ch. Jan. 26, 2023), holding for the first time that a...more
Non-director officers may face liability for failing to properly oversee the corporation’s affairs and ignoring “red flags” within their “areas of responsibility.” Key Points: ..The McDonald’s Corporation’s response...more
In what seems destined to be a landmark Delaware Court of Chancery decision, Vice Chancellor J. Travis Laster denied former McDonald’s Executive Vice President and Global Chief People Officer David Fairhurst’s motion to...more
On January 25, 2023, in In re McDonald’s Corporation Stockholder Derivative Litigation, Vice Chancellor Travis Laster of Delaware’s Court of Chancery denied a motion to dismiss a derivative lawsuit against David Fairhurst,...more
A decision by the Delaware Court of Chancery allowing shareholders to sue McDonald’s over an alleged “toxic culture” of sexual harassment and misconduct at McDonald’s provides a stark reminder that employers must actually...more
Fast-Food Franchise Resolves Sex Harassment Case Involving Young Employees Spanning Three States - LAS VEGAS – AMTCR, Inc., AMTCR Nevada, Inc., and AMTCR California, LLC (AMTCR), a Kingman, Arizona headquartered franchise...more
Vermont-Based Coughlin Created Sexually Hostile Work Environment Against Class of Workers, Mostly Teens, Federal Agency Charged - NEW YORK – Coughlin, Inc., a Vermont-based company that owns and operates ten McDonald’s...more
Franchise Owner’s Pervasive Culture of Harassment Spanned Across Three States, Federal Agency Charges - LAS VEGAS – AMTCR, Inc., AMTCR Nevada, Inc., and AMTCR California, LLC violated federal law by allowing a class of...more
Northern District of California Kicks Shareholder Derivative Suit Against Alphabet, Inc. For Failing to Allege Demand Futility; Rare Securities “Holder’s Claim” Trial Results in Jury Verdict for Defendants; Delaware Court of...more
Teenage Employee Harassed and Assaulted by Male Supervisor, Federal Agency Charged - FAYETTEVILLE, N.C. – Par Ventures, Inc., a North Carolina corporation which operates a chain of seven McDonald’s fast food restaurants,...more
In the wake of McDonalds’ CEO Steve Easterbrook’s decision to step down for having a consensual relationship with an employee in violation of company policy, many are left wondering, is there any room in the restaurant...more
Surprisingly, one in three employees are in a romantic relationship with someone they work with, and more than half of all-American professionals say they have participated in a workplace romance at some point. Originally...more
Credle Enterprises to Pay $340,000 to Resolve Claims of Physical and Verbal Harassment of Female Employees - DALLAS - Credle Enterprises, LLC, doing business as McDonald's in the Texas panhandle, will pay $340,000 and...more
What’s happening at McDonald’s should serve as an important lesson for many employers. In the past two weeks, it was reported that its CEO resigned or was terminated (depending on what news outlet you read) because he...more
Dean Foods, the largest milk company in the U.S., has filed for bankruptcy protection, a “fresh setback to a U.S. dairy industry struggling against declining U.S. milk consumption and rising competition.” Industry experts...more