Monday, October 11, 2021

Kirkland & Ellis partner examines recent shift in Delaware shareholder derivative litigation

By Matthew Solum, Kirkland & Ellis, LLP

Two recent decisions by the Delaware Supreme Court that were rendered within days of each other have shifted the landscape of shareholder derivative litigation, according to Matthew Solum of Kirkland & Ellis. He discusses the ruling in Brookfield Asset Management v. Rosson, which overturned 15 years of precedent on whether certain shareholder claims are direct or derivative. He also reviews the decision in United Food & Commercial Workers Union v. Mark Zuckerberg, et al. and Facebook, Inc., which created a new test for demand futility in derivative cases, and clarified older precedent that did not account for more recent developments in Delaware law.

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