Delaware Supreme Court Adopts New Demand Futility 3-Part Test

Mealey's ( September 27, 2021, 2:16 PM EDT) -- WILMINGTON, Del. — A unanimous Delaware Supreme Court on Sept. 23 adopted a three-part test for determining demand futility set forth by the Delaware Chancery Court in a lawsuit against Facebook Inc. CEO Mark Zuckerberg and Facebook’s board of directors over their plan to reclassify Zuckerberg’s stock in the social media platform, ruling that the test is consistent with the state high court’s holdings in Aronson v. Lewis, Rales v. Blasband and their progeny....