We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Citigroup And The Duty To Manage Risk

Law360 (April 3, 2009, 12:00 AM EDT) -- When analyzing claims that directors failed to exercise proper oversight over management, Delaware courts turn to the oft-cited opinion of former Chancellor Allen in In re Caremark Int’l Inc. Derivative Litigation.[1]

Chancellor Allen, in a "reassessment" of the traditional "red flag" standard established by the Delaware Supreme Court in Graham v. Allis-Chalmers Manufacturing Company,[2] held that boards of directors must have systems in place designed to detect potential wrongdoing.

In so ruling, the Chancellor set a high bar for plaintiffs attacking a corporation that has implemented...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.