• Fisher v. Sanborn

    Publication Date: 2021-04-14
    Practice Area: Corporate Governance
    Industry: Financial Services and Banking | E-Commerce | Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Chancellor Bouchard
    Attorneys: For plaintiff: Blake A. Bennett, Cooch and Taylor, P.A., Wilmington, DE; Brian J. Robbins, Stephen J. Oddo, Emily R. Bishop, Robbins LLP, San Diego, CA for plaintiff.
    for defendant: A. Thompson Bayliss, Joseph A. Sparco, Abrams & Bayliss LLP, Wilmington, DE; James N. Kramer, Alexander K. Talarides, Orrick Herrington & Sutcliffe LLP, San Francisco, CA for defendants.

    Case Number: D69359

    Derivative complaint dismissed for failure to make pre-suit demand where lack of evidence that a majority of directors acted knowingly and deliberately in permitting the company to violate consumer protection laws or providing false and misleading information to the public meant that directors were exculpated from bad faith claims and therefore faced no substantial likelihood of personal liability and could independently evaluate a litigation demand.

  • RCS Creditor Trust v. Schorsch

    Publication Date: 2021-03-31
    Practice Area: Corporate Governance
    Industry: Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Vice Chancellor Glasscock
    Attorneys: For plaintiff: Philip Trainer, Jr., Marie M. Degnan, Ashby & Geddes, Wilmington, DE; John P. Coffey, Gregory A. Horo-witz, Jeffrey S. Trachtman, Leah S. Friedman, Kramer Levin Naftalis & Frankel LLP, New York, NY for plain-tiff.
    for defendant: Daniel A. Mason, Paull, Weiss, Rifkind, Wharton & Garrison LLP, Wilmington, DE; Allan J. Arffa, Gregory F. Laufer of Paull, Weiss, Rifkind, Wharton & Garrison LLP, New York, NY for defendants.

    Case Number: D69348

    The court granted summary judgment because a corporate controller did not breach his fiduciary duty by making a business decision regarding how he would vote his shares.

  • City of Detroit Police & Fire Ret. Sys. v. Hamrock

    Publication Date: 2021-03-24
    Practice Area: Corporate Governance
    Industry: Energy | Investments and Investment Advisory
    Court: U.S. District Court of Delaware
    Judge: District Judge Stark
    Attorneys: For plaintiff: Carmella P. Keener, Cooch and Taylor, P.A., Wilmington, DE; Daniel S. Sommers, Joshua Handelsman, Cohen Milstein Sellers & Toll PLLC, Washington, DC; Richard A. Speirs, Amy Miller, Cohen Milstein Sellers & Toll PLLC, New York, NY; Kip B. Shuman, Shuman, Glenn & Stecker, San Francisco, CA; Rusty E. Glenn, Shuman, Glenn & Stecker, Denver, CO; Brett D. Stecker, Shuman, Glenn & Stecker, Ardmore, PA; Ronald A. King, Clark Hill PLC, Lansing, MI for plaintiff.
    for defendant: Gregory P. Williams, Raymond J. DiCamillo, Katharine L. Mowery, Richards, Layton & Finger, P.A., Wilmington, DE; Walter C. Carlson, Nilofer Umar, Caroline A. Wong, Sidley Austin LLP, Chicago, IL for defendants.

    Case Number: D69335

    Derivative claim of breach of loyalty dismissed where demand was not excused as plaintiff failed to show that directors were likely to face liability on underlying claim and therefore could not be disinterested and independent.

  • DG BF, LLC v. Ray

    Publication Date: 2021-03-17
    Practice Area: Corporate Governance
    Industry: Consumer Products | Food and Beverage | Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Vice Chancellor Zurn
    Attorneys: For plaintiff: Sean J. Bellew, Bellew LLP, Wilmington, DE; Gerard P. Fox, Marina V. Bogorad, Gerard Fox Law P.C., Los Angeles, CA for plaintiffs.
    for defendant: Sean A. Meluney, Matthew D. Beebe, Benesch, Friedlander, Coplan & Aronoff LLP, Wilmington, DE; David B. Anthony, Berger Harris LLP, Wilmington, DE; Perry J. Woodward, Hopkins & Carley, A Law Corporation, San Jose, CA for defendants.

    Case Number: D69328

    Plaintiffs could proceed with breach of contract and implied covenant of good faith and fair dealing claims after alleging company and its officers breached express obligations under operating agreement and failed to act in good faith in selection of independent managers.

  • Guliyev v. Sandberg

    Publication Date: 2021-03-03
    Practice Area: Corporate Governance
    Industry: Software
    Court: U.S. District Court of Delaware
    Judge: District Judge Noreika
    Attorneys: For plaintiff: Brian E. Farnan, Michael J. Farnan, Farnan LLP, Wilmington, DE; Christopher J. Kupka, Samir Shukurov, William J. Fields, Fields Kupka & Shukurov LLP, New York, NY for plaintiff.
    for defendant: A. Thompson Baylis, Daniel John McBride, Abrams & Bayliss LLP, Wilmington, DE for defendants.

    Case Number: D69314

    The court awarded plaintiff attorney fees in this proxy challenge litigation based on the "common corporate benefit" doctrine, but it awarded a much smaller amount than plaintiff requested.

  • Lacey v. Mota-Velasco

    Publication Date: 2021-02-24
    Practice Area: Corporate Governance
    Industry: Investments and Investment Advisory | Mining and Resources
    Court: Court of Chancery
    Judge: Vice Chancellor Glasscock
    Attorneys: For plaintiff: Peter B. Andrew, Craig J. Springer, David Sborz, Andrews & Springer LLC, Wilmington, DE; Jeremy S. Friedman, Spencer Oster, David F.E. Tejtel, Friedman Oster & Tejtel PLLC, Bedford Hills, NY for plaintiff.
    for defendant: William M. Lafferty, John P. DiTomo, Elizabeth A. Mullin, Morris, Nichols, Arsht & Tunnell LLP, Wilming-ton, DE; Bradley J. Benoit, Bryan Dumesnil, Bracewell LLP, Houston, TX; Srinivas M. Raju, Andrew J. Peach, Matthew W. Murphy, Richards, Layton & Finger, P.A., Wilmington, DE; Steven R. Selsberg, S. Sels-berg Law, PLLC, Houston, TX; Sylvia A. Mayer, S. Mayer Law PLLC, Houston, TX; Peter J. Walsh, Jr., Mat-thew F. Davis, Elizabeth M. Taylor, Potter Anderson & Corroon LLP, Wilmington, DE; Robert J. Giuffra, Jr., David M.J. Rein, Matthew A. Peller, Y. Carson Zhou, Sullivan & Cromwell LLP, New York, NY for defend-ants.

    Case Number: D69305

    The court granted defendant directors' motion to dismiss a breach of contract claim because plaintiff's claim was essentially one for breach of fiduciary duty.

  • Bcker v. Palisades Growth Capital II, L.P.

    Publication Date: 2021-02-10
    Practice Area: Corporate Governance
    Industry: Investments and Investment Advisory | Software
    Court: Delaware Supreme Court
    Judge: Justice Montgomery-Reeves
    Attorneys: For plaintiff: Thomas A. Uebler, Joseph L. Christensen, Hayley M. Lenahan, McCollom D’Emilio Smith Uebler LLC, Wilmington, DE for appellants.
    for defendant: Bradley R. Aronstam, Roger S. Stronach, Holly E. Newell, Ross Aronstam & Moritz LLP, Wilmington, DE; Jon M. Talotta, Hogan Lovells US LLP, Tysons, VA; Michael C. Hefter, Hogan Lovells US LLP, New York, NY for appellee.

    Case Number: D69287

    Court properly found controller had affirmatively deceived directors to foster quorum by publicly expressing support for CEO after making statements to others suggesting controller intended to fire the CEO.

  • Durham v. Grapetree, LLC

    Publication Date: 2021-01-27
    Practice Area: Corporate Governance
    Industry: Hospitality and Lodging
    Court: Court of Chancery
    Judge: Vice Chancellor Glasscock
    Attorneys: For plaintiff: Andrew C. Durham, plaintiff pro se.
    for defendant: John G. Harris, Berger Harris LLP, Wilmington, DE for defendant.

    Case Number: D69270

    LLC member's breach of fiduciary duties arising from alleged violation of member's perquisite could not be brought directly against company where contractual agreement to provide the perquisite was issued by the managing members and not from the company.

  • Riskin v. Burns

    Publication Date: 2021-01-27
    Practice Area: Corporate Governance
    Industry: Investments and Investment Advisory | Technology Media and Telecom
    Court: Court of Chancery
    Judge: Vice Chancellor McCormick
    Attorneys: For plaintiff: Richard P. Rollo, Travis S. Hunter, Sarah A. Clark, Robert B. Greco, Angela Lam, Richards, Layton & Fin-ger, P.A., Wilmington, DE for plaintiff.
    for defendant: Brad D. Sorrels, Andrew D. Cordo, Daniyal M. Iqbal, Wilson Sonsini Goodrich & Rosati, P.C., Wilmington, DE; A. Thomspon Baylis, Adam K. Schulman, Abrams & Bayliss LLP, Wilmington, DE; Bruce A. Ericson, Sta-cie O. Kinser, Pillsbury Winthrop Shaw Pittman LLP, San Francisco, CA; David J. Teklits, Alexandra M. Cumings, Morris, Nichols, Arsht & Tunnell LLP, Wilmington, DE for defendants.

    Case Number: D69274

    The court granted motions to dismiss with respect to one group of defendants because some of plaintiff's claims were time-barred, and plaintiff failed to allege sufficient facts to support the remaining claims against those particular defendants.

  • Richardson v. Clark

    Publication Date: 2021-01-27
    Practice Area: Corporate Governance
    Industry: Financial Services and Banking
    Court: Court of Chancery
    Judge: Vice Chancellor Glasscock
    Attorneys: For plaintiff: Kevin H. Davenport, Samuel L. Closic, Jason W. Rigby, Prickett, Jones & Elliott, P.A., Wilmington, DE; Frank R. Schirripa, Daniel B. Rehns, Hach Rose Schirripa & Cheverie LLP, New York, NY for plaintiff.
    for defendant: A. Thompson Bayliss, Joseph A. Sparco, Abrams & Bayliss LLP, Wilmington, DE; Scott P. Drake, Norton Rose Fulbright US LLP, Dallas, TX; Peter A. Stokes, Norton Rose Fulbright US LLP, Austin, TX for defend-ants.

    Case Number: D69273

    A company's directors failed to adequately address problems identified by federal regulators, but their conduct did not amount to bad faith.