The Delaware Court of Chancery, in Andrew C. Nielson, et al. v. EBTH, Inc., C.A. No. 2019-0164-MTZ, memo. op. (Del. Ch. Sept. 30, 2019), found former directors and officers entitled to advancement for defense of claims alleging they misrepresented a company’s financial condition in connection with a private sale of their stock, where they acted as the company’s agents and controllers, and were able to access confidential information due to their fiduciary roles.
NEW: Morris James discusses the decision in Court of Chancery Orders Advancement of Fees for Former Directors and Officers who Sold their Stock in a Private Transaction.
K&L Gates discusses the decision in Chancery Court Reaffirms Protection of Mandatory Advancement Rights.
[$$$] Eckert Seamans discusses the decision in Chancery Affirms Advancement Principles.