The Delaware Court of Chancery, in In re NantHealth, Inc. Stockholder Litigation, C.A. No. 2018-0302-AGB (consol.), order (Del. Ch. Jan. 15, 2020), found that members of a demand board lacked independence from a company’s CEO based on social ties and business relationships with other entities the CEO controlled.
NEW: Fox Rothschild discusses the decision in NantHealth Inc. Directors Dismissed from Suit, with Exception of Breach of Fiduciary Duty Claims Against Founder.
$$$ Law360 discusses the decision in Biotech Firm NantHealth’s CEO Can’t Escape Stockholder Suit.