Corporate Litigation: Preclusion in Derivative Litigation: New Uncertainty
In his Corporate Litigation column published in the New York Law Journal, Joseph M. McLaughlin assesses preclusion in derivative litigation and a recent Delaware Court of Chancery decision that introduces uncertainty to widely accepted doctrine. He discusses that until the Delaware Supreme Court provides definitive word, managers and stockholders of Delaware corporations must make strategic decisions based on conflicting guidance on whether the law of the first jurisdiction to decide demand issues will govern whether successive stockholders seeking to relitigate demand allegations are in privity with the first stockholder.