Ruling Imperils Directors' Advancement Of Fees

Law360, New York (May 10, 2008, 12:00 AM EDT) -- A recent decision in the Delaware Court of Chancery has directors of companies worried that they will no longer always be advanced legal fees and expenses when a lawsuit is brought against them.

There are no statutory rights to advancement in Delaware, but most companies have included such provisions in their charters or bylaws. Moreover, the Delaware courts have traditionally been very strict in enforcing the rights of officers and directors, according to Randy Bodner, the head of Ropes & Gray LLP's securities and business litigation...
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