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: Delaware Business Litigation ReportDistrict Court Applies Stone v. Ritter in Rule 23.1 Case
By Morris James LLP
King v. Baldino, C.A. No. 08-54-GMS-MPT (D. Del. Aug. 26, 2009).
This memorandum order issued by Magistrate Mary Pat Thynge is an example of the continued judicial reluctance to impose oversight responsibility on boards of directors, where the plaintiff fails to plead that the board was on notice, through 'red flags,' of corporate misconduct. The Magistrate applied Delaware law on oversight liability as set out in Stone v. Ritter, 911 A.2d 362 (Del. 2006) to find that the plaintiff failed to plead demand futility and comply with Federal Rule of Civil Procedure Rule 23.1.
Full post as published by Delaware Business Litigation Report on September 11, 2009 (boomark / email).
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