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Red Flags Rule Corporate Officers

Jenner & Block

The Duty of Directors and Officers to Respond to Red Flags

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The duty of oversight requires directors to (1) make a good faith effort to ensure that their corporations have proper reporting systems in place, and (2) take action to address red flags that indicate potential corporate...more

DarrowEverett LLP

AmeriSource Decision a Difficult Pill to Swallow for Securities Plaintiffs

DarrowEverett LLP on

The opioid crisis has garnered nationwide attention for decades and has resulted in thousands of lawsuits, subjecting pharmaceutical distributors to billions of dollars in damages. AmerisourceBergen (“Amerisource”) — one of...more

Paul Hastings LLP

Delaware Court of Chancery Expressly Holds that Corporate Officers Owe a Duty of Oversight

Paul Hastings LLP on

In a recent opinion, the Delaware Court of Chancery for the first time expressly held that corporate officers, like corporate directors, owe a duty of oversight. In defining the scope of the oversight duty at the officer...more

Cadwalader, Wickersham & Taft LLP

The Ramifications of The Delaware Court of Chancery’s McDonald’s Decision – Beyond Holding That Caremark Oversight Obligations...

Last year, we discussed how stockholder complaints concerning environmental, social, and governance (“ESG”) issues were making their way to the courtroom and, specifically, how  the Delaware Court of Chancery and Supreme...more

Bodman

Delaware Court of Chancery Establishes That the Duty of Oversight Extends to Officers

Bodman on

On January 25, 2023, the Delaware Chancery Court issued its ruling in In re McDonald’s Corporation Stockholder Derivative Litigation, C.A. No. 2021-0324-JTL (Del. Ch. Jan. 26, 2023), holding for the first time that a...more

Fox Rothschild LLP

Delaware Court Decision Poses New Liability Risks for Corporate Officers

Fox Rothschild LLP on

A recent Delaware Court of Chancery decision exposes corporate officers to significant liability for breach of fiduciary duties and indicates a trend in Delaware courts in which it is now possible for plaintiffs to assert and...more

Warner Norcross + Judd

Delaware Court Extends Oversight Duty to Officers in McDonald’s Case

Last week, Delaware’s influential Court of Chancery issued an important decision clarifying that the duty of oversight applies to both officers (executive level employees) and directors (members of the board of directors)....more

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