Del. Justices Say Chancery Was Right To Toss Uber-Otto Suit

Law360 (January 13, 2020, 9:48 PM EST) -- Delaware's highest court on Monday upheld a vice chancellor's dismissal with prejudice of a stockholder derivative action against the board of ride-hailing giant Uber over an acquisition, finding that the investor who filed the suit should have first brought his concerns to the board.

The three-judge panel comprising Chief Justice Collins J. Seitz Jr., Justice Karen L. Valihura and Justice Gary F. Traynor found in their Monday decision that plaintiff Lenza H. McElrath III had been required, prior to filing suit, to make a demand of the company's board of directors, which he had not done.

McElrath's attorney had argued before...

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