BlackRock Can't Get Chancery To Nix PennyMac Investor Suit

Law360 (December 23, 2019, 6:03 PM EST) -- A Delaware Chancery judge on Friday rejected a bid by investment management giant BlackRock Inc. to toss a derivative and proposed class action filed by a PennyMac Financial Services Inc. investor that claims a corporate reorganization of the mortgage company was unfair to certain stockholders while benefiting others such as BlackRock.

Vice Chancellor Kathaleen S. McCormick's ruling said a less onerous standard of review under the Delaware Supreme Court's Corwin v. KKR Financial Holdings, known as the business judgment rule, cannot be applied at this stage of the case because "the complaint supports a reasonably conceivable inference that two large PennyMac...

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