El Pollo Loco Insider Trading Suit Tossed Out Of Del. Court
By Joyce Hanson (July 30, 2021, 8:18 PM EDT) -- The Delaware chancellor has tossed an investor lawsuit seeking derivative damages on behalf of restaurant chain El Pollo Loco over approximately $118 million in alleged insider trades, heeding a call to dismiss the suit by a special litigation committee set up by the company's board.
Chancellor Kathaleen St. J. McCormick of the Court of Chancery on Friday cited a 1981 Delaware Supreme Court ruling in Zapata Corp. v. Maldonado in finding that the special litigation committee members were independent and conducted a reasonable investigation of the investors' claims, despite the investors' argument that the committee failed to adequately consider two related...
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