By Jonathan Richman (July 28, 2017, 12:46 PM EDT) -- The chancellor of Delaware's Court of Chancery has urged the Delaware Supreme Court to revise Delaware law on preclusion in shareholder derivative actions. The court's July 25, 2017, decision in In re Wal-Mart Stores Inc. Delaware Derivative Litigation recommended that the Supreme Court adopt a rule that a judgment in one derivative action cannot bind the corporation or its stockholders in another derivative action unless either (1) the first action has survived a motion to dismiss because a presuit demand on the corporation's board of directors would have been futile or (2) the board has given the plaintiff authority to proceed on the corporation's behalf by declining to oppose the derivative suit. In other words, preclusion would not apply unless the stockholder in the first case had been empowered by either a court or the board to assert the corporation's claims....