Francis Pileggi Discusses Delaware Supreme Court’s Sidestep of Proper Purpose Requirement Issue in Central Laborers Pension Fund v. News Corp.

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 the Delaware Corporate & Commercial Litigation Blog.

For more information about LexisNexis products and solutions connect with us through our corporate site.