The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

August 16, 2013

Delaware Federal Court Refuses to Dismiss Claim Alleging Stock Plan Limit Violations

Broc Romanek, CompensationStandards.com

As noted by Paul Hasting’s Mark Poerio in this ExecutiveLoyalty.org blurb:

A shareholder derivative action has avoided dismissal despite the absence of a presuit demand for board action, because the underlying complaint raised a reasonable doubt that stock awards exceeded a plan’s limits on individual awards, and thereby were not a valid exercise of business judgment. See Halpern v Zhang, D.DE.

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