McG Capital Corp. ex rel. Jenzabar, Inc. v. Maginn, 2010 Del. Ch. LEXIS 87 (Del. Ch. May 5, 2010)

McG Capital Corp. ex rel. Jenzabar, Inc. v. Maginn, 2010 Del. Ch. LEXIS 87 (Del. Ch. May 5, 2010)

LexisNexis Overview: Demand futility under Del. Ch. Ct. R. 23.1 was not excused as to derivative claims where a majority of the board was disinterested, independent, and not subject to personal liability due to an exculpatory provision under Del. Code Ann. tit. 8, § 102(b)(7); direct breach of fiduciary duty claims failed.

Counsel: David C. McBride, Martin S. Lessner, and Emily V. Burton, of YOUNG CONAWAY STARGATT & TAYLOR, LLP, Wilmington, Delaware; OF COUNSEL: John G. Fabiano, Daniel W. Halston, and Michael R. Dube, of WILMER CUTLER PICKERING HALE & DORR, LLP, Boston, Massachusetts, for Plaintiff.

Catherine G. Dearlove, Geoffrey G. Grivner, and Thomas A. Uebler, of RICHARDS, LAYTON & FINGER, P.A., Wilmington, Delaware, Peter J. Walsh, Jr., Abigail M. Legrow, and Daniel A. Mason, of POTTER ANDERSON & CORROON, LLP, Wilmington, Delaware; OF COUNSEL: Edward J. Naughton, of BROWN RUDNICK, LLP, Boston, Massachusetts, Robert Ullmann, of NUTTER McCLENNEN & FISH, LLP, Boston, Massachusetts, Stephen D. Poss and Kevin P. Martin, of GOODWIN PROCTER, LLP, Boston, Massachusetts, for Defendants.

Judge: CHANDLER, Chancellor.

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