Strine Upholds 'Only In Delaware' Lawsuit Bylaws

Law360, New York (June 25, 2013, 9:07 PM EDT) -- Public companies can require shareholders to sue them only in Delaware court, Chancellor Leo E. Strine Jr. ruled Tuesday, upholding bylaws enacted by two companies seeking out a friendlier, or at least more predictable, forum for shareholder litigation.

Chancellor Strine held that bylaws enacted by Chevron Corp. and FedEx Corp. setting the Delaware Chancery Court as the exclusive home of any stockholder suits did not violate state law.

"Our Supreme Court has long noted that bylaws, together with the certificate of incorporation and the broader [state...
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