The Delaware Court of Chancery, in Buckley Family Trust v. Charles Patrick McCleary, et al. and McCleary, Inc., C.A. No. 2018-0903-AGB, memo. op. (Del. Ch. Mar. 31, 2020), dismissed stockholder plaintiff’s “oppressive abuse of discretion” claim for refusal to declare dividends, where directors were not exculpated for breaches of the duty of care under 8 Del. C. § 102(b)(7), where plaintiff failed to allege directors acted coercively or out of self-interest.
NEW: K&L Gates discusses the decision in Court of Chancery Defers to Board of Director’s Business Judgment in Response to Stockholder’s Dividend Demand.
Morris James discusses the decision in Chancery Dismisses Claims Seeking to Compel a Dividend Declaration and for Breach of the Duty of Care.