Corporate Law News

R.R. Donnelley Directors Duck Derivative Suit Over Compensation

Jan. 31, 2020, 8:29 PM

The CEO and several directors of marketing company R.R. Donnelley & Sons Co. defeated a derivative stockholder complaint Friday, because the plaintiffs made a litigation demand and failed to show it was wrongfully refused, the Delaware Court of Chancery held.

R.R. Donnelley completed the spinoff of two companies in October 2016, resulting in a new compensation program for the board. In October 2018, more than a year after the revised pay plan was included on a filing with the SEC, plaintiffs’ counsel Newman Ferrara LLP sent a letter to the board suggesting “corrective action to address excessive director compensation,” among...

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