The Delaware Supreme Court balked Wednesday at the suggestion of expanding liability in derivative lawsuits alleging corporate insiders used confidential information for their own gain through trades of the company’s stocks.
Three justices sharply questioned an attorney for an investor arguing Armistice Capital LLC owed a fiduciary duty to its shareholders because its appointment of its chief investment officer to the board of Aytu BioPharma Inc. created “a relationship of trust and confidence.”
“Think of what you’re saying means for the future,” Chief Justice Collins J. Seitz Jr. told Andrew Robertson of Morris Kandinov LLP. “Anytime a company appoints someone ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.