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: Delaware Business Litigation ReportCourt of Chancery Finds Duty To Speak
By Morris James LLP
In this case of first impression, the Court of Chancery held that a corporation had a duty to a warrant holder to truthfully answer its inquiries about corporate plans. This is significant because normally there is no fiduciary duty running to warrant holders and no duty to keep them informed. Here, however, finding that when asked about a matter that implicated the warrant holders' financial interest, there was a duty to answer a question truthfully.
Full post as published by Delaware Business Litigation Report on April 10, 2008 (boomark / email).
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