Delaware Corporate Law Update

Updates on Delaware Corporate Law by Evan O. Williford, Esq., Delaware Corporate Litigation Attorney.

Chancery Dismisses Derivative Case Against Goldman

Today the Court issued a decision in derivative litigation regarding Goldman Sachs and its trading strategies and compensation leading up to mortgage and housing crisis of a few years ago.  Vice Chancellor Glasscock, recently appointed to the bench, issued the decision granting defendants’ motion to dismiss.

The decision reaffirms, from the newest member of the Court, the old principle that the Court of Chancery will not accept breach of fiduciary duty suits bottomed on questions of whether a particular business or compensation strategy was wise.

It also reaffirms the principle that donations by a company to a director’s charities do not in and of themselves prevent that director from being independent.

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Filed under: Court of Chancery, Derivative Actions, Fiduciary Duties

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Disclaimer

Delaware Corporate Law Update solely reflect the views of Evan Williford of The Williford Firm, LLP. Its purpose is to provide general information concerning Delaware law; no representation is made about the accuracy of any information contained herein, and it may or may not be updated to reflect subsequent relevant events. This website is not intended to provide legal advice. It does not form any attorney-client relationship and it is not a substitute for one.