Case Study: NACCO Industries V. Applica

Law360, New York (January 26, 2010, 2:30 PM EST) -- Recently, in NACCO Industries Inc. v. Applica Inc., No. 2541-VCL (Del. Ch. Dec. 22, 2009), the Delaware Court of Chancery declined to dismiss claims of common law fraud arising from allegedly false and misleading statements made in federal securities filings.

The Delaware courts, it held, have jurisdiction to consider such claims and are not preempted by Section 27 of the Securities and Exchange Act of 1934, which confers exclusive jurisdiction to federal courts over actions brought to enforce Exchange Act rules.

Background

In early 2006, Applica...
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