The U.S. District Court for the District of Delaware applied Court of Chancery precedent to dismiss two shareholder lawsuits filed against the boards of ConocoPhillips Co. and Allergan Inc. In both cases, shareholders alleged that the corporations wasted resources by approving employee compensation plans, but the federal court dismissed the litigation because the shareholders had not made a demand on the board prior to initiating the lawsuits.
U.S. Magistrate Judge Sherry R. Fallon issued the opinions last week in New Jersey Building Laborers Pension Fund v. Ball and Freedman v. Mulva.
