Shareholder Ruling Resolves Dual-Natured Claim Uncertainty

Robert May, Christina Ademola, and Nitesh Daryanani authored an article for Law360 about the Delaware Supreme Court’s decision in Brookfield Asset Management Inc. v. Rosson, eliminating the ambiguity surrounding so-called dual-natured direct and derivative claims.

“The Brookfield decision removes a 15-year tension in the direct-derivative doctrine, clearing a path for greater certainty for corporate deal makers,” the authors wrote. “The key question to identify a direct claim is whether the stockholder has demonstrated that they have suffered an injury that is not dependent on an injury to the corporation.”

Read the full article.