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Expert Analysis

Del. Bans 'Loser Pays' Bylaws — What Questions Remain?

Law360, New York (June 16, 2015, 10:18 AM EDT) -- In a late-night session on June 11, 2015, the Delaware House of Representatives overwhelmingly passed S.B. 75, which prohibits Delaware stock corporations from adopting "loser pays" fee-shifting bylaws and which confirms that Delaware corporations may adopt bylaws designating Delaware courts as the exclusive forum for shareholder litigation. The bill, which previously passed the state's Senate, now goes to Delaware Gov. Jack Markel for his signature. The bill provides that the changes will be effective Aug. 1, 2015. A copy of the bill can be found here....

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