Rising Oversight Suits Let Delaware Fill Gaps in Law, Judge Says

An increasing number of claims from investors seeking accountability from company boards and executives is giving the Delaware Court of Chancery the opportunity to address some “gray areas” in corporate law, the court’s chief judge said.

A novel 2019 Delaware Supreme Court decision that found a corporate board had failed to provide proper oversight that would have caught a fatal listeria outbreak in Blue Bell ice cream undermined the consensus that those lawsuits were difficult for shareholders to win, Chancellor Kathaleen St. Jude McCormick said Thursday during a Delaware Governance Institute panel discussing so-called Caremark claims. The increased ...