Del. Justices Strike Down 'Dual-Natured' Claims Precedent
By Hailey Konnath (September 20, 2021, 11:02 PM EDT) -- The Delaware Supreme Court on Monday struck down a controversial "dual-natured" claims precedent related to whether direct claims in combined direct-derivative actions can survive after mergers or buyouts eradicate derivative rights, holding that the precedent created confusion and conflicted with state law.
The ruling comes in a closely watched interlocutory appeal from Brookfield Asset Management Inc., which had asked the state Supreme Court to reverse a Delaware Court of Chancery order denying its motion to dismiss a consolidated stockholder derivative and class action. The appeal centered on the effect of the Delaware Supreme Court's 2006 decision in Gentile v. Rossette on...
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