Publication Date: 2025-03-04
Practice Area: Corporate Governance
Industry: Investments and Investment Advisory | Technology Media and Telecom
Court: Court of Chancery
Judge: Vice Chancellor Fioravanti
Attorneys: For plaintiff: Stephen E. Jenkins, Marie M. Degnan, Ashby & Geddes, P.A., Wilmington, DE; Frank R. Schirripa, Daniel B. Rehns, Kurt Hunciker, Kathryn Hettler, Isaac G. Netzer, Hach Rose Schirripa & Cheverie LLP, New York, NY; Gregory Mark Nespole, Daniel Tepper, Correy A. Suk, Levi & Korsinsky, LLP, New York, NY; David A. Jenkins, Neal C. Belgam, Jason Z. Miller, Smith, Katzenstein & Jenkins LLP, Wilmington, DE; Steven J. Purcell, Robert H. Lefkowitz, Anisha Mirchandani, Purcell & Lefkowitz LLP, New York, NY for plaintiffs.
for defendant: Peter J. Walsh, Jr., Jacqueline A. Rogers, Potter Anderson & Corroon LLP, Wilmington, DE; Matthew Rawlinson, Latham & Watkins LLP, Menlo Park, CA; Colleen C. Smith, Latham & Watkins LLP, San Diego, CA; Kristin N. Murphy, Latham & Watkins LLP, Costa Mesa, CA; Bradley D. Sorrels, Andrew D. Cordo, Lauren G. DeBona, Wilson Sonsini Goodrich & Rosati, P.C., Wilmington, DE; David J. Berger, Wilson Sonsini Goodrich & Rosati, P.C., Palo Alto, CA; S. Toni Wormald, Wilson Sonsini Goodrich & Rosati, P.C., San Francisco, CA for defendants.
Case Number: 2022-0461-PAF
Court dismissed derivative complaint for lack of demand futility where plaintiff stockholders failed to allege sufficient facts to support finding that at least half of the demand board lacked independence from the controlling stockholder CEO or otherwise faced a substantial risk of liability for approving his equity compensation award without stockholder approval.