Francis G.X. Pileggi of Eckert Seamans Cherin
& Mellott, LLC, discusses Central Laborers Pension Fund v. News Corp.
No. 682, 2011 (Del. May 29, 2012). The issue on appeal to the Delaware
Supreme Court was whether one can satisfy the proper purpose requirement of Delaware
General Corporation Law section 220 when a derivative action is filed
simultaneously with the section 220 action. The court, however, declined
to address the issue and instead affirmed dismissal of the suit on different
grounds, finding the prerequisite of showing beneficial ownership was not
satisfied. The case is discussed in detail in Francis' blog post on
Corporate & Commercial Litigation Blog.
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