On March 17th, the Delaware Chancery Court posted its March 3, 2010, opinion denying defendants' motion to dismiss a shareholder derivative lawsuit. The complaint alleged that defendants, directors of Toll Brothers, engaged in insider trading, breaching the fiduciary duty that they owed to the company. Defendants argued that dismissal was warranted because the line of state law cases allowing such claims were anachronistic and conflicted with federal policies and enforcement mechanisms. The Court disagreed, holding that the complaint asserts claims for harm to the company, claims which are distinct from, and complementary to, those subject to the federal securities laws. Pfeiffer v. Toll.
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Delaware law recognizes derivative insider trading lawsuit
- Winston & Strawn LLP
- USA
- March 22 2010
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Siphokazi Cilibe
Contracts Manager
PHD, a division of The Fuel Logistics Group (Pty) Ltd
