The Delaware Court of Chancery, in Teamsters Local 443 Health Services & Insurance Plan, et al. v. John G. Chou, et al. and AmerisourceBergen Corp., C.A. No. 2019-0816-SG, memo. op. (Del. Ch. Aug. 24, 2020), finds demand futile based on director defendants’ substantial likelihood of liability for breach of their Caremark oversight duty where red flags allegedly warned them of mission-critical compliance failures in their highly regulated industry.
NEW: Francis Pileggi discusses the decision in Chancery explains how AmerisourceBergen plaintiffs’ Caremark claim passed pre-suit demand test.
Tulane Law’s Professor Ann Lipton discusses the decision in A Cautious Caremark Opinion.
Troutman Pepper discusses the decision in The Latest Successful Caremark Claim.
Delaware Business Court Insider discusses the decision in Chancery Court Rejects Motion to Derail Cancer Drugs Case, Finding Complaint Met ‘Caremark’ Standard.
Bloomberg Law discusses the decision in AmerisourceBergen Board Must Face Investors’ Syringes Lawsuit.
$$$ Law360 discusses the decision in Chancery Keeps AmerisourceBergen Drug Scheme Suit Alive.