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Controlling Stockholders Delaware Business Litigation

Morris James LLP

Chancery Finds Plaintiff Stated a Claim for Breach of Fiduciary Duty Where Corporation Merged into Limited Liability Company,...

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Pena v. MacArthur Grp. Inc., C.A. No. 2023-0412-MTZ (Del. Ch. Oct. 1, 2025) - Corporate fiduciaries, like officers, directors or controlling stockholders, face potential liability for breach of the duty of loyalty, where...more

A&O Shearman

Delaware Supreme Court Upholds Award Of Nominal Damages To Plaintiffs Unharmed By Unfair Conflicted Controller Transaction

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On December 3, 2025, Chief Justice Collins Seitz, on behalf of the Delaware Supreme Court sitting en banc, upheld the Court of Chancery’s award of nominal damages in an action against a conflicted controller for breach of his...more

Cornerstone Research

M&A Litigation Settlements in the Delaware Court of Chancery: Executive Summary

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Many merger and acquisition (M&A) transactions involving companies incorporated in Delaware have been subject to litigation brought in the Delaware Court of Chancery by stockholders of the acquirer or target. This report...more

Cornerstone Research

M&A Settlements in the Delaware Court of Chancery Surpass $600 Million in 2024

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The number and total aggregate amount of settlements in merger and acquisition (M&A)-related lawsuits in the Delaware Court of Chancery have increased substantially since 2019, according to a new report released today by...more

Morris James LLP

Court of Chancery Dismisses Statutory and Fiduciary Duty Claims Arising Out of a Foreclosure Sale

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When a creditor who also owns significant equity exercises rights to foreclose because the debtor company is unable to meet its debt obligations, issues can arise as to whether the creditor/stockholder owes fiduciary duties...more

Troutman Pepper Locke

Delaware Court of Chancery Holds That the Exercise of a Midstream-Adopted Call Right Was Invalid

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In Ban v. Manheim, the Delaware Court of Chancery held that the exercise of a call right against a stockholder of a Delaware corporation was invalid under Section 202 of the Delaware General Corporation Law (DGCL) because the...more

Allen Matkins

This Texas Case Illustrates Why Delaware Corporations Are Choosing Nevada

Allen Matkins on

Bright-eyed Athena, the goddess of wisdom, was not birthed of a woman.  Rather, she sprang from the head of Zeus after he swallowed Metis, the pre-Olympian goddess of wisdom...more

Morris James LLP

Court of Chancery Applies the American Rule and Denies Attorneys’ Fees Despite Fiduciary Breach

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In re Straight Path Commc’ns Inc. Consol. S’holder Litig., C.A. No. 2017-0486-SG (Del. Ch. Oct. 29, 2024) - The Court of Chancery in this stockholder class action refused to award attorneys’ fees where the Court found the...more

Foley & Lardner LLP

Delaware Enacts Significant Changes to Delaware General Corporation Law

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As discussed in Foley’s Corporate Governance Update last month, SB 21: Delaware Responds In The DExit Battle, the Delaware legislature has been moving quickly to ensure that Delaware remains the preeminent home of choice for...more

Foley & Lardner LLP

SB21: Delaware Responds In The DExit Battle

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The annual DGCL amendments this year carry a little more urgency than before. SB21 was rushed through to the Delaware Senate in mid-February, bypassing the normal process that involves recommendation by the Council of the...more

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