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Wayfair Board Beats Claims Insiders Traded on Virus Fears

Nov. 24, 2021, 6:43 PM

Wayfair Inc.'s board shook off a pension fund’s claims in Delaware State Court that its shares were diluted when insiders purchased $535 million worth of stock in anticipation of the company’s value jumping after being depressed by Covid-19 concerns.

The Delaware Chancery Court dismissed the derivative suit because the plaintiff, Equity-League Pension Trust Fund, failed to make a demand on the Wayfair board to bring the litigation, and it failed to show that such a demand would have been futile.

“It is clear that the Transaction, as characterized in the complaint, was far from a model of best practices,” Vice ...

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