‘Only In Delaware’ Ruling A Win For Boards, But Tests Await

Law360, New York (June 27, 2013, 8:55 PM EDT) -- This week’s ruling that companies can legally require any shareholder suing them to do so in Delaware offers an outside-the-box solution to what many in corporate America see as the growing scourge of multiforum litigation, but experts say the requirement will face tests as it enters into wider use.

Chancellor Leo E. Strine, Jr. rejected plaintiffs' arguments that bylaws adopted by Chevron Corp. and FedEx Corp. are invalid on their face. The purchase of stock is like any other commercial contract, the chancellor said, and forum...
To view the full article, register now.