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State Courts -
Delaware - April 5 - April 6, 2006
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Feldman v. Cutaia, C.A. No. 1656-N,
COURT OF CHANCERY OF DELAWARE, NEW CASTLE, April 5, 2006, Decided , April 5, 2006, Filed
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Overview: Corporate directors' motion to dismiss a shareholder's derivative action was denied as the shareholder was not required to have made a demand of the directors under Del. Ch. Ct. R. 23.1. Further, the shareholder adequately alleged a claim that a repurchase of options and warrants by the corporation violated Del. Code Ann. tit. 8, § 160(a)(1).
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Levy v. Hayes Lemmerz Int'l, Inc., C.A. No. 1395-N,
COURT OF CHANCERY OF DELAWARE, NEW CASTLE, April 5, 2006, Decided , April 5, 2006, Filed
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Overview: Former outside directors' indemnification claims were dismissed as to a new company that emerged from bankruptcy as the new company had no obligation to indemnify the former directors of the old company. The directors' claims were not dismissed as to the old company as they had a right to proceed for indemnification against the old company.
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