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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