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Summaries and analysis of recent Delaware court decisions concerning business-related litigation.

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Showing one post in Disclosures.

Chancery Examines Framework of Fiduciary Disclosure Obligations in Soliciting Private Investments

Posted In Disclosures, Fiduciary Duty, Fraud

Clark v. Davenport, C.A. No. 2017-0839-JTL (Del. Ch. July 18, 2019). 

This opinion decides a motion to dismiss fraud and related tort claims arising out of various investments against a former director and CEO and an employee of a controlling stockholder.

When the investments turned out to be worthless, the plaintiff investor brought suit for breach of fiduciary duties and common law fraud arising from information that the investor received before investing in a company controlled by a business colleague and friend.  More ›