The Delaware Court of Chancery, in John Solak v. Daniel G. Welch, et al. and Ultragenyx Pharmaceutical, Inc., C.A. No. 2018-0810-KSJM, memo. op. (Del. Ch. Oct. 30, 2019), found stockholder plaintiff’s letter to the board “suggesting” corrective action regarding director compensation was a litigation demand under Rule 23.1, even though the letter stated that it was not a litigation demand.
NEW: K&L Gates discusses the decision in Stockholder Letter Requesting Remedial Action Deemed A Pre-Suit Demand.
Morris James discusses the decision in Chancery Finds Request for “Corrective Action” to be a Litigation Demand, Dismisses Derivative Claims for Failure to Plead Wrongful Refusal.
DLA Piper discusses the decision in New decision shows importance of carefully analyzing shareholder grievance communications that may be “demands”.
[$$$] Gibson Dunn discusses the decision in If It Looks Like a Duck: Chancery Court Knows a Demand When It Sees One.
Frank Reynolds discusses the decision in Chancery: investor’s stealth demand on biopharma can’t avoid Spiegel pre-suit demand choice.
Skadden discusses the decision in A Pipe Is Indeed a Pipe: Delaware Court of Chancery Provides Important Guidance to Companies by Dismissing Excessive Director Pay Case.
[$$$] Law360 discusses the decision in Biopharma Investor’s Letter Dooms Officer Salary Suit.