The Delaware Court of Chancery, in Jonathan Urdan, et al. v. WR Capital Partners, et al. and Energy Efficient Equity, Inc., C.A. No. 2018-0343-JTL, memo. op. (Del. Ch. Aug. 19, 2019), found stockholders’ sale of shares after they filed suit deprived them of standing to bring both direct and derivative claims, and standing was not preserved defendants’ purported waiver of the right to raise lack of standing as a defense.

K&L Gates discusses the decision in Not quite instantaneous, Holmesian “Bad Men” can win by knowing the law: Plaintiffs who tried to preserve direct and derivative claims in a settlement agreement failed to realize that they had already bargained them away.