The Delaware Court of Chancery, in MKE Holdings, Ltd., et al. v. Kevin Schwartz, et al. and Verdesian Life Sciences, LLC, C.A. No. 2018-0729-SG, memo. op. (Del. Ch. Sept. 26, 2019), found that an “internally inconsistent” LLC Agreement that seemed to impose a negligence standard required only that approval of conflicted transactions be in good faith.
NEW: K&L Gates discusses the decision in Delaware Court of Chancery Dismisses Derivative Claims in Reliance on Exculpatory Language in Limited Liability Company Agreement.
[$$$] Morris James discusses the decision in Complaint Dismissed Against Managers of a Del. LLC Where Plaintiffs Fail to Allege Standard of Conduct Violation.