Follow Us Subscribers SAVE 30%

Call 855-808-4530 or email to receive your discount on a new subscription.

Corporate Entities Foreign Corrupt Practices Act Litigation White Collar Crime

DE Courts Uphold Strict Limitations on Liability for Oversight Claims

In 2017, two cases illustrated that Delaware courts continue to impose exacting pleading burdens on Caremark claims, especially when plaintiffs say that they are excused from making a demand on the board before suing derivatively.


Thank you for sharing!

Your article was successfully shared with the contacts you provided.

It is an all-too-familiar accusation for many directors: If only you had done something more, the corporation could have avoided an injury or loss. Since the mid-1990s, Delaware courts have repeatedly recognized that attempting to pin personal liability on directors for their alleged inaction is “possibly the most difficult theory in corporation law upon which a plaintiff might hope to win a judgment.” See In re Caremark International Derivative Litigation, 698 A.2d 959, 967 (Del. Ch. 1996).

To continue reading,
become a free ALM digital reader

Benefits include:

*May exclude premium content

Read These Next