Court Of Chancery Explains Need To Plead Unfairness Of Conflicted Deal

Posted on May 31, 2011 by Edward M. McNally

The Ravenswood Investment Company LP v. Winmill, C.A. 3730-VCN (May 31, 2011)

Some may think that all you need to state a claim for breach of fiduciary duty is to allege the action under attack involved a conflicted board.  Not so.  At the very least, a plaintiff also needs to allege facts that show the deal was unfair to the company.  Once that is pled, then the burden does shift to the conflicted board to justify the transaction.

Tags:
Trackbacks (0) Links to blogs that reference this article Trackback URL
http://www.delawarebusinesslitigation.com/admin/trackback/250235
Comments (0) Read through and enter the discussion with the form at the end
Post A Comment / Question Use this form to add a comment to this entry.







Remember personal info?
Send To A Friend Use this form to send this entry to a friend via email.