Delaware Business Litigation Report

Delaware District Court Stays Twitter Derivative Case Pending Securities Action

In re Twitter Inc. Shareholder Derivative Litigation, C.A. No. 18-62-VAC-MPT (D. Del. July 23, 2018)

Several Court of Chancery decisions discuss the appropriateness of staying a derivative action pending a related securities laws action.  Doing so relieves a company from the tension of having to defend against allegations of wrongdoing carried out by its directors or officers while at the same time a stockholder is seeking to prove those same claims against its directors and officers on its behalf.  A stay also has the advantage of allowing the existence and size of any damages to be firmly established.  This is another decision to add to that line of authority.

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