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.