Fox, Snap Beat Investors in Executive Liability Shield Challenge

Fox Corp. and Snap Inc. prevailed Wednesday in lawsuits challenging liability shields for senior executives in new charter amendments.

Vice Chancellor J. Travis Laster, in a ruling from the bench, granted the companies’ motions for summary judgment in the coordinated cases in Delaware’s Chancery Court. The lawsuits by investors alleged the charters were changed without a vote from class A investors unaffiliated with the companies’ financial backers.

“Speaking for myself, I never previously thought the exculpation amendment required a class vote. Until I read the plaintiff’s briefs, I thought this case was a no-brainer and an easy call,” Laster said. ...