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Expert Analysis

Delaware Supreme Court Adopts "Caremark" Standard In Assessing Director Oversight Liability

Law360 (November 14, 2006, 12:00 AM EST) -- On November 6, 2006, the Supreme Court of the State of Delaware announced its decision in Stone v. Ritter, expressly adopting a director liability standard in corporate oversight matters first set forth in the In re Caremark Int'l Deriv. Litig. case. In the context of these types of claims, where plaintiffs allege that directors breach their duty of loyalty by failing to attend to their duties in good faith, this decision should provide directors of Delaware companies additional comfort with respect to the standard to which they will be held in the context of corporate oversight....

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