Practical Implications Of Delaware's New Demand-Futility Test
Securities Litigation attorneys Courtney Worcester and Roger Lane co-authored an article in Law360 on a decision made by the Delaware Supreme Court to implement a new three-part test as the "universal test for assessing whether demand should be excused as futile" when stockholders seek to bring derivative litigation on a company's behalf. This decision will provide valuable clarity to an important aspect of Delaware corporate law. In their article, the authors analyze the United Food and Commercial Workers Union v. Zuckerberg et al. case and provide insight on the adoption and implications of Delaware's new demand-futility test.