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.
Register Now As you are not an existing subscriber please register for your free daily legal newsfeed service.Register
If you have any questions about the service please contact email@example.com or call Lexology Customer Services on +44 20 7234 0606.
Delaware law recognizes derivative insider trading lawsuit
- Winston & Strawn LLP
- March 22 2010
If you are interested in submitting an article to Lexology, please contact Andrew Teague at firstname.lastname@example.org.
”Lexology is a useful and informative tool. I keep copies of relevant articles and often forward them to colleagues. Although I do not know all of the authors/firms, by reading their articles I do gain an understanding of...
”Lexology is a useful and informative tool. I keep copies of relevant articles and often forward them to colleagues. Although I do not know all of the authors/firms, by reading their articles I do gain an understanding of their appreciation of a topic, and should the need arise I would not hesitate to contact them on those topics.”
Legal Department Administrator
Jovian Capital Corporation