Our prediction is that this will end in a settlement with Musk paying somewhat less than the $1 billion kill fee he recklessly agreed to when he even more recklessly waived almost all rights of inspection. This may be Twitter’s all-time highest ROI. Twitter sued Elon Musk on Tuesday to force the billionaire to complete…
Category: delaware
Agenda – ‘Board Publicly Lied’ — Case Against Directors Moves Forward
The Boeing board “publicly lied” about monitoring airplane safety following two deadly 737 Max crashes, according to court records. Directors also allegedly failed to assess airplane safety and fell short in demanding or expecting safety reports from management. Delaware Chancery Court Judge Morgan Zurn used these and other determinations to allow oversight claims against Boeing…
Expanded Director Liability for Email (Delaware) and Greenwashing (Australia)
Arnold and Porter writes: A recent Delaware court decision, In re WeWork Litigation, put a spotlight on the risk of corporate employees and directors destroying privilege by communicating through email….In WeWork, the Delaware Court of Chancery found that the use of Sprint email accounts by Sprint employees doing WeWork-related work for SoftBank caused the communications between SoftBank…
Recent Delaware Court of Chancery Decision Sustains Another Caremark Claim at the Pleading Stage
A board of directors has one job: managing risk. Everything they do, selecting, overseeing, compensating, and replacing top management, setting overall strategy, balancing competing interests, is all in service to sustainable growth of the business. Terms like “mission-critical” are just a reflection of that principle. After decades of routinely dismissing such claims, Vice Chancellor Laster’s…
Citing Thin Board Record: Delaware Court of Chancery Again Sustains Oversight Claim
A rare case of finding a board vulnerable to a liability claim: The Delaware Court of Chancery has sustained another Caremark claim, pointing to the absence of documents produced in response to a stockholder’s inspection demand as evidence that the directors “face a substantial likelihood of liability” for “failing to act in good faith to…
Goldman Settlement of Investor’s Board-Pay Claims Rejected – Bloomberg
A bid by Goldman Sachs Group Inc. to settle a lawsuit over how much it pays directors was rejected by a judge who said that simply making changes in corporate governance didn’t provide enough benefit to the firm. The ruling comes as part of a chancery court crackdown on so-called “disclosure settlements,’’ in which companies resolve investor…
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