Exec Harassment Derivative ‘Earthquake’ Meets Delaware Justices

Companies must be able to bring derivative claims over the intentionally harmful illegal acts committed by their fiduciaries if the nation’s premier business court wants to maintain its power to police company loyalty, a Credit Glory co-founder told Delaware’s highest court.

The brief filed by the credit repair service’s Alex Brola on Friday could resolve a split in the state Chancery Court. It considers whether owners of a company can sue executives for personal actions on the job that cause the business harm.

The case facts center around Credit Glory’s former director, vice president, and secretary Christopher Lundgren whose sexual ...