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Corinne Ball, a partner at Jones Day, writes: Recent decisions from the Third Circuit have seemingly eroded at the sense of security directors, officers and, by extension, controlling shareholders and their affiliates, once placed in the landmark holding from Trenwick Am. Litig. Trust v. Billet . While Trenwick still stands for the proposition that deepening insolvency is not recognized as an independent cause of action in Delaware, plaintiffs have resurrected the concept as they pursue independent causes of action rooted in a breach of fiduciary duty of loyalty.
February 26, 2009 at 12:00 AM
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