• In re: SmileDirectClub, Inc. Derivative Litig.

    Publication Date: 2021-06-16
    Practice Area: Corporate Governance
    Industry: Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Vice Chancellor Zurn
    Attorneys: For plaintiff: Blake A. Bennett, Cooch and Taylor, P.A., Wilmington, DE; P. Bradford deLeeuw, deLeeuw Law LLC, Wil-mington, DE; Lee Squitieri, Squitieri & Fearon, LLP, New York, NY; Jeffrey S. Abraham, Michael J. Klein, Abraham, Fruchter & Twersky LLP, New York, NY; Donald J. Enright, Elizabeth K. Tripodi, Jordan Cafritz, Levi & Korsinsky, LLP for plaintiffs.
    for defendant: Edward B. Micheletti, Jenness E. Parker, of Skadden, Arps, Slate, Meagher & Flom LLP, Wilmington, DE; Scott D. Musoff, Skadden, Arps, Slate, Meagher & Flom LLP, New York, NY for defendants.

    Case Number: D69435

    The court granted defendants' motion to dismiss this derivative because plaintiffs failed to meet the con-temporaneous ownership requirement, so they lacked standing.

  • June 1, 2021 | Delaware Law Weekly

    Lawsuit Alleging SmileDirectClub Insider Transaction Nixed for Shareholders' Lack of Standing

    Plaintiffs alleging an insider transaction weren't eligible to file a derivative suit involving the company's 2019 IPO because they were challenging terms of a deal agreed to before they purchased stock, despite owning shares before it took place.

    3 minute read

  • June 1, 2021 | Delaware Business Court Insider

    Lawsuit Alleging SmileDirectClub Insider Transaction Is Tossed for Shareholders' Lack of Standing

    Plaintiffs alleging an insider transaction weren't eligible to file a derivative suit involving the company's 2019 IPO because they were challenging terms of a deal agreed to before they purchased stock, despite owning shares before it took place.

    3 minute read

  • 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.

  • 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.

  • Sycamore Partners Mgmt., L.P. v. Endurance Am. Ins. Co.

    Publication Date: 2021-03-17
    Practice Area: Insurance Litigation
    Industry: Insurance | Investments and Investment Advisory
    Court: Delaware Superior Court
    Judge: Judge LeGrow
    Attorneys: For plaintiff: David J. Baldwin, Peter C. McGivney, Berger Harris LLP, Wilmington, DE; John E. Failla, Nathan R. Lander, Elise A. Yablonski, Proskauer Rose LLP, New York, NY for plaintiffs.
    for defendant: Barry M. Klayman, Cozen O’Connor, Wilmington, DE; Michael R. Davisson, Cozen O’Connor, Los Angeles, CA; Elena C. Norman, Michael A. Laukaitis, II, Young Conaway Stargatt & Taylor, LLP, Wilmington, DE; Michael F. Perlis, Locke Lord LLP, Los Angeles, CA; Michael P. Duffy, Scarlett M. Rajbanshi, Peabody & Arnold LLP, Boston, MA; Ian Connor Bifferato, The Bifferato Firm, P.A., Wilmington, DE; James Thurston, Wilson Elser Moskowitz Edelman & Dicker, LLP, Chicago, IL; Daniel E. Tranen, Wilson Elser Moskowitz Edelman & Dicker, LLP, Edwardsville, IL; Elizabeth B. Sandza, Wilson Elser Moskowitz Edelman & Dicker, LLP, Washington, DC; Carmella P. Keener, Cooch and Taylor, P.A., Wilmington, DE; Ronald P. Schiller, Daniel J. Layden, Hangley Aronchick Segal Pudlin & Schiller, P.C., Philadelphia, PA for defendants.

    Case Number: D69333

    Insurers' defense of uninsurability failed as a matter of law, because Delaware law did not prohibit insur-ance policies for restitution or disgorgement.

  • Chaverri v. Dole Food Co., Inc.

    Publication Date: 2021-03-10
    Practice Area: Personal Injury
    Industry: Agriculture | Chemicals and Materials
    Court: Delaware Supreme Court
    Judge: Justice Vaughn
    Attorneys: For plaintiff: Scott M. Hendler, Rebecca Webber, Hendler Flores, PLLC, Austin, TX; Andrew C. Dalton, Dalton and Associates, P.A., Wilmington, DE for appellants.
    for defendant: Andrea E. Neuman, Gibson Dunn & Crutcher LLP, New York, NY, William E. Thomson, Gibson Dunn & Crutcher LLP, Los Angeles, CA; Jennifer C. Wasson, Stephanie E. O’Byrne, Potter Anderson & Corroon LLP, Wilmington, DE; Boaz S. Morag, Cleary Gottlieb Steen & Hamilton LLP, New York, NY; James W. Semple, Cooch and Taylor, P.A., Wilmington, DE; Adam V. Orlacchio, Brandon W. McCune, Blank Rome LLP, Wilmington, DE; Michael L. Brem, Schirrmeister Diaz-Arrastia Brem LLP, Houston, TX; Ryan D. Stottman, Barnaby Grzaslewicz, Morris, Nichols, Arsht & Tunnell LLP, Wilmington, DE; Craig Stanfield, King & Spalding LLP, Houston, TX; Kelly E. Farnan, Richards Layton & Finger, P.A., Wilmington, DE; Timothy Jay Houseal, Jennifer M. Kinkus, Young Conaway Stargatt & Taylor LLP, Wilmington, DE; John C. Phillips, Jr., Phillips, Goldman & Spence, P.A., Wilmington, DE for appellees.

    Case Number: D69319

    Superior court did not abuse discretion in denying motion to vacate dismissal based on after-decided federal cases where differences between the federal first-filed rule and Delaware's first-filed rule meant the superior court could handle plaintiffs' second-filed action differently than it might be handled under the federal rule.

  • Jacob v. Bloom Energy Corp.

    Publication Date: 2021-03-10
    Practice Area: Corporate Entities
    Industry: Energy | Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Vice Chancellor Slights
    Attorneys: For plaintiff: Blake A. Bennett, Cooch and Taylor, P.A., Wilmington, DE; Sam Bonderoff, James Ostaszewski, Matthew Hendrickson, Zamansky LLC, New York, NY for plaintiffs.
    for defendant: Kevin G. Abrams, John M. Seaman, Eliezer Y. Feinstein, Abrams & Bayliss LLP, Wilmington, DE for defendant.

    Case Number: D69321

    Stockholder established a proper purpose for the inspection of corporate books and records, but the court limited the scope of some of the requests.

  • Legion Partners Asset Mgmt., LLC v. Underwriters at Lloyds London

    Publication Date: 2020-10-14
    Practice Area: Insurance Law
    Industry: Insurance | Investments and Investment Advisory
    Court: Delaware Superior Court
    Judge: Judge LeGrow
    Attorneys: For plaintiff: David J. Soldo, Patricia A. Winston, Morris James LLP, Wilmington, DE for plaintiff.
    for defendant: Carmella P. Keener, Cooch and Taylor, P.A., Wilmington, DE; Kim W. West, Alec H. Boyd, Clyde & Co. U.S. LLP, San Francisco, CA for defendant.

    Case Number: D69153

    Insurer was obligated to advance costs pertaining to insured's defense to counterclaims in an arbitration proceeding, because those counterclaims were within the scope of the policy.

  • Rudd v. Brown

    Publication Date: 2020-09-30
    Practice Area: Corporate Governance
    Industry: Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Vice Chancellor Zurn
    Attorneys: For plaintiff: Blake A. Bennett, Cooch and Taylor, P.A., Wilmington, DE; Lawrence P. Eagel, W. Scott Holleman, Garam Choe, Bragar Eagel & Squire, P.C., New York, NY for plaintiff.
    for defendant: Daniel A. Mason, Brendan W. Sullivan, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Wilmington, DE; Lewis R. Clayton, Robert N. Kravitz, Harris Fischman, Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, NY; Ashley R. Altschuler, Ethan H. Townsend, McDermott Will & Emery LLP, Wilmington, DE; Jeffrey M. Reisner, Jason D. Strabo, Paul Ferrillo, McDermott Will & Emery LLP, Los Angeles, CA for defendants.

    Case Number: D69138

    The court dismissed plaintiff's complaint for breach of fiduciary duty because the corporate charter contained an exculpatory clause, and plaintiff failed to plead facts making it reasonably conceivable that any of the defendants were conflicted.

  • In re USG Corp. Stockholder Litig.

    Publication Date: 2020-09-16
    Practice Area: Mergers and Acquisitions
    Industry: Construction | Distribution and Wholesale | Manufacturing
    Court: Court of Chancery
    Judge: Vice Chancellor Glasscock
    Attorneys: For plaintiff: Blake A. Bennett, Cooch & Taylor, P.A., Wilmington, DE; Michael J. Palestina, Kahn Swick & Foti, LLC, New Orleans, LA; Juan E. Monteverde and Miles D. Schreiner, Monteverde & Assoc., New York, NY for plaintiffs.
    for defendant: Raymond J. Dicamillo, Srinivas M. Raju, Robert L. Burns, Matthew D. Perri and Angela Lam, Richards, Layton & Finger, P.A., Wilmington, DE; Robert S. Faxon, Andrienne F. Mueller and Robert E. Johnson, Jones Day, Cleveland, OH for defendants.

    Case Number: D69121

    Stockholders stated facts which indicated that they were not fully informed when they approved a deal for the sale of the company, but they failed to adequately allege that the company's directors acted with scienter.