Main Menu

Showing one post in Lee v. Pincus.

Has the Chancery Court Created a New Tort?

Authored By Edward M. McNally This article was originally published in the Delaware Business Court Insider December 17, 2014 A recent decision by the Delaware Court of Chancery may have plowed fresh ground by establishing a new tort claim against corporate directors. Lee v. Pincus, C.A. No. 8458-CB (Del. Ch. Nov. 14, 2014), held that directors who released themselves from a lockup agreement gained a benefit that was not shared with stockholders and may be liable to those stockholders as a result. This "improper benefit" claim is at least novel, if not entirely unprecedented. Corporate directors need to understand the implication of this decision. More › Share
Back to Page