Landry's: Delaware Court of Chancery Denies Motion to Dismiss Claim of Breach of Duty of Loyalty | Practical Law

Landry's: Delaware Court of Chancery Denies Motion to Dismiss Claim of Breach of Duty of Loyalty | Practical Law

An update on the Delaware Chancery Court's opinion finding a reasonable inference of a breach of the duty of loyalty of a controlling stockholder and board of directors, based in part on the board's effective waiver of receipt of a reverse break-up fee. The court also found that a failure to install a poison pill in the face of an obvious threat to the corporation could support a reasonable inference of a breach of duty of loyalty.

Landry's: Delaware Court of Chancery Denies Motion to Dismiss Claim of Breach of Duty of Loyalty

by PLC Corporate & Securities
Published on 04 Aug 2009Delaware
An update on the Delaware Chancery Court's opinion finding a reasonable inference of a breach of the duty of loyalty of a controlling stockholder and board of directors, based in part on the board's effective waiver of receipt of a reverse break-up fee. The court also found that a failure to install a poison pill in the face of an obvious threat to the corporation could support a reasonable inference of a breach of duty of loyalty.