Delaware Supreme Court affirms preclusive effect of non-Delaware dismissals and rejects irrebuttable presumption that a derivative plaintiff who fails to conduct a Section 220 inspection is an inadequate representative *

USA - April 23 2013
In Pyott v. Louisiana Municipal Police Employees' Retirement System, No. 380, 2012, 2013 WL 1364695 (Del. Apr. 4, 2013), the Delaware Supreme Court…

Co-authors: John Stigi.

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Second Circuit reverses class certification order, holding that a clearing broker's alleged knowledge of fraud against shareholders, absence direct involvement, is insufficient to create a duty of disclosure *

USA - March 27 2013
In Levitt v. J.P. Morgan Securities, Inc., No. 10-4596, 2013 WL 1007678 (2d Cir. Mar. 15, 2013), the United States Court of Appeals for the Second…

Co-authors: Jonathan Moss, John Stigi.

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United States Supreme Court holds that class action securities fraud plaintiffs need not prove the materiality of the alleged false statements or omissions to support certification of a class, resolving circuit split *

USA - March 7 2013
In Amgen Inc. v. Connecticut Retirement Plans & Trust Funds, No. 11-1085, ___ WL ______ (U.S. Feb. 27, 2013), the United States Supreme Court…

Co-authors: Steven O. Kramer , John Stigi.

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Delaware Chancery Court rejects stockholder's Section 220 books and records demand based upon failure to demonstrate "credible basis" for inspection *

USA - November 14 2012
In Louisiana Municipal Police Employees’ Retirement System v. Lennar Corp., C.A. No. 7314-VCG, 2012 WL 4760881 (Del. Ch. Oct. 5, 2012), the Delaware Court of Chancery, on a motion for summary judgment, rejected a stockholder’s demand under Section 220 of the Delaware General Corporation Law (“Section 220”).

Co-authors: John Stigi.

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Delaware Chancery Court holds that a stockholder inadequately represents a corporation in derivative litigation when he or she files a Caremark claim without first making a Section 220 books and records demand *

USA - November 14 2012
In South v. Baker, C.A. No. 7294-VCL, 2012 Del. Ch. LEXIS 229 (Del. Ch. Sept. 25, 2012), the Delaware Court of Chancery adopted a rebuttable presumption of inadequate representation when a stockholder asserts a “Caremark claim” without first investigating the claim using Section 220 of the Delaware General Corporation Law (“Section 220”), a statute allowing under certain conditions stockholder inspection of the corporation’s books and records.

Co-authors: John Stigi.

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