News & Analysis as of

Good Faith Duty of Care

Morrison & Foerster LLP

What Fiduciary Duties Do I Have as a Director of a Delaware Corporation?

You’re an entrepreneur, you form your first company, and suddenly you carry the title of founder, director, officer, and/or employee all at once. When running your business, it may feel like all of your roles blur together....more

Dechert LLP

Delaware Court of Chancery Issues Significant Decision Addressing Fiduciary Duties of Officers, Including Holding that Officers...

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Corporate officers owe the same fiduciary duty of oversight as directors. Just as with directors, officers fulfill their oversight duty by acting in good faith....more

Rivkin Radler LLP

Insurance Update - May 18 2022

Rivkin Radler LLP on

You’ll find some notable decisions in our May Insurance Update. Appeals over pandemic-related business interruption losses have made their way up to state high courts. And so far, these courts have continued the trend...more

Latham & Watkins LLP

UK FCA Publishes Detailed Plans for New Consumer Duty

Latham & Watkins LLP on

FCA makes clear that it expects a cultural shift in how firms focus on consumers. On 7 December 2021, the FCA published its second Consultation Paper (CP21/36) on introducing a new Consumer Duty....more

Benesch

Shareholders Seek to Hold Current and Former SolarWinds Officials Liable for Massive 2020 Security Breach

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Investors filed a derivative suit claiming that the company knew about, and failed to mitigate known, existing cybersecurity risks and shortfalls prior to the security breach. In early November, pension funds and...more

Hogan Lovells

FCA proposals for a new Consumer Duty

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The FCA first published a discussion paper on a duty of care in July 2018 – nearly two years on it is now consulting on introducing a new Consumer Duty. There is now to be a clear timeline for the introduction of the changes,...more

Goodwin

California State Court Upholds Exclusive Federal Forum-Selection Charter Provision for 1933 Act Suits

Goodwin on

California State Court Upholds Exclusive Federal Forum-Selection Charter Provision for 1933 Act Suits; California District Court Dismisses Fraud-Related Claims Against AT&T; Third Circuit Holds Challenge to SEC’s Decision to...more

Polsinelli

Member of an Arizona LLC? You May Have a Fiduciary Duty to the LLC

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Arizona has finally resolved the issue of whether managers and members of an Arizona Limited Liability Company (LLC) owe a common law fiduciary duty to the LLC and whether an operating agreement can lawfully limit those...more

A&O Shearman

Reversing A Dismissal, The Delaware Supreme Court Finds The Absence Of Board-Level Monitoring Of "Central Compliance Risks"...

A&O Shearman on

On June 18, 2019, in a decision authored by Chief Justice Leo E. Strine Jr., the Delaware Supreme Court en banc reversed the dismissal of a stockholder derivative suit against the directors and officers of Blue Bell...more

Skadden, Arps, Slate, Meagher & Flom LLP

Director Independence and Oversight Obligation in Marchand v. Barnhill

On June 18, 2019, in Marchand v. Barnhill, the Delaware Supreme Court, in an opinion written by Chief Justice Leo E. Strine, Jr. on behalf of a unanimous court, issued a decision reversing the Court of Chancery’s dismissal of...more

Carlton Fields

District Of South Carolina Denies Motion To Dismiss Action Involving Fronting Relationship

Carlton Fields on

Applying Delaware law, a South Carolina District Court found Plaintiff had properly pled its causes of action for breach of contract, breach of fiduciary duty, negligence/gross negligence and negligent misrepresentation...more

Allen Matkins

Nevada’s Duty Of Care Standard Fails To Win Summary Judgment For Director

Allen Matkins on

NRS 78.138(1) imposes two explicit duties on directors in the exercise of their powers: they must act in good faith and with a view to the interests of the corporation. This contrasts with Delaware case law which speaks of a...more

Pullman & Comley, LLC

Message: Good Faith is Not Care

Pullman & Comley, LLC on

When an insurer issues a policy, it assumes a duty not only to investigate and pay claims, but to do so in good faith. There is, however, a difference between that duty and the duty of due care that arises under tort law. ...more

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