A shareholder’s letter requesting that Intercept Pharmaceuticals Inc. take “all necessary action” to address its allegedly excessive director-compensation policy qualified as a presuit litigation demand that opened the door for business judgment rule protections to be invoked, a Manhattan judge ruled last week.
New York Supreme Court Justice Charles E. Ramos on March 23 ruled that plaintiff John Solak’s March 2017 correspondence with the biopharmaceutical firm’s board met a requirement under Delaware law that a shareholder must exhaust all corporate remedies before filing suit on behalf of the company.
Justice Charles Ramos.
Photo: David Handschuh/NYLJ
