Northern Bio Founder Gets Claims Against New Management Revived

Northern Biomedical Research’s founder convinced an appellate court to reopen parts of his case against four executives to whom he gave a majority stake in the Michigan-based company.

The district court should have applied “a relatively demanding fiduciary duty of candor” standard for disclosure under Michigan common law, rather than Delaware law, the US Court of Appeals for the Sixth Circuit ruled Thursday. Thus, there remained a genuine dispute of material fact about Robert Boyd’s entitlement to relief under a common law fiduciary duty claim.

“Applying the correct standard, a jury could reasonably find that Boyd was entitled to know” ...