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Litigation

: Delaware Business Litigation Report

Court of Chancery Upholds Statute of Repose for Dissolved Corporations

By Morris James LLP

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The Territory Of The Virgin Islands v. Goldman, Sachs & Co., C.A. No. 2505-VCS (December 20, 2007).

This decision upholds the law that Section 278 of the Delaware General Corporation Law ("DGCL") acts as a statute of repose to bar the filing of all litigation against a Delaware corporation after 3 years from the date of its dissolution.

As the court also notes, that means that a suit against stockholders under Section 325 of the DGCL for having received an improper liquidating distribution are also precluded under those circumstances.

Full post as published by Delaware Business Litigation Report on December 20, 2007 (boomark / email).

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