The Delaware Court of Chancery, in Hubert Owens v. Tim M. Mayleben, et al. and Esperion Therapeutics, Inc., C.A. No. 12985-VCS, memo. op. (Del. Ch. Feb. 13, 2020), dismissed putative derivative plaintiff’s claims challenging allegedly misleading public statements regarding a drug candidate on demand futility grounds for failing to plead directors faced a substantial likelihood of liability or made intentional misstatements, rejecting application of the “core operations” doctrine under which a court may infer board knowledge of matters relating to a corporation’s core product.
NEW: K&L Gates discusses the decision in Caremark Claim Dismissed Due to Inadequate Pleading of Demand Futility.
$$$ Law360 discusses the decision in Chancery Drops Suit Over Biopharma Firm’s Cholesterol Drug.