Biopharma Investor's Letter Dooms Officer Salary Suit
By Rose Krebs (October 31, 2019, 4:03 PM EDT) -- A Delaware vice chancellor on Wednesday tossed an investor suit against biopharmaceutical company Ultragenyx Pharmaceutical Inc. over alleged excessive board salaries, ruling the stockholder's derivative action was procedurally flawed because he had made a presuit litigation demand on the board that was rejected.
In a 21-page memorandum opinion, Vice Chancellor Kathaleen S. McCormick said a letter sent by stockholder John Solak before his suit was filed asking that the company's directors take action to address the allegedly excessive director pay was more than just an "informal" communication with the board as Solak's counsel had tried to argue.
"Revealing the proverbial wolf...
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