Litigation

Chancery Dismisses Derivative Claims for Failing Aronson and Rales Tests

By Francis G. X. Pileggi, Esq.

In Postorivo v. AG Paintball Holdings, Inc., 2008 WL 553205 (Del. Ch., Feb. 29, 2008), read opinion here, the Delaware Chancery Court addressed claims arising out of an Asset Purchase Agreement, pursued by a disgruntled buyer. The court dismissed the derivative claims based on the failure to establish demand futility as to board decisions under Aronson v. Lewis, and as for claims that did not challenge board decisions, the plaintiff failed the Rales v. Blasband test. 

Here is a summary of an earlier decision in the case (also from last month) that dealt with an attorney/client privilege issue.

Full post as published by Delaware Corporate and Commercial Litigation Blog on March 06, 2008 (boomark / email).