Richards Kibbe & Orbe Discusses Delaware Rulings on Boards’ Duty of Oversight

Earlier this month, the Delaware Court of Chancery denied defendant directors’ motion to dismiss a duty-of-oversight claim brought by plaintiff shareholders in In re Clovis Oncology, Inc. Derivative Litigation.[1]  This decision, together with a similar June 2019 ruling by the Delaware Supreme Court in Marchand v. Barnhill[2], confirms the prospect of liability for corporate directors who do not work hard enough to establish and monitor effective risk-management procedures at their companies.  The two rulings therefore deliver timely lessons regarding directors’ duty of oversight under Delaware’s Caremark standard.  The rulings are especially important for directors of companies whose … Read more