litigation

‘Conversations are happening:’ clients haven’t stopped asking their attorneys whether Delaware is their best option for incorporation

Delaware Business Court Insider

Delaware’s newly-enacted changes to its corporate code were designed to keep the state attractive to corporations and keep the revenue they bring to state coffers.

In the first weeks following the passage of Senate Bill 21, litigators and transactional attorneys are still having the same conversations with their clients weighing the pros and cons of incorporating in Delaware as opposed to emerging jurisdictions like Texas or Nevada, each of which have been taking actions of their own to attract corporations in recent months.

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A look back at ‘Goldman Sachs’: How price impact is changing securities class actions

Litigation Daily

It’s been 14 months since the Second Circuit Court of Appeals laid the groundwork for defendants to raise price-impact defenses in securities litigation in Arkansas Teacher Retirement System v. Goldman Sachs Group Inc. In recent talks with securities litigators, I’ve asked how many cases they are seeing that cite the Goldman Sachs case. 

The answer I’ve heard across the board is that when it comes to event-driven securities litigation that makes it to the class certification stage, just about everyone on the defense side cites Goldman Sachs. 

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Even with new business courts, Texas is a long way from taking Delaware’s corporate law mantle

Delaware Business Court Insider

Texas has a new system of business courts up and running on the heels of an ongoing conversation about Delaware’s corporate primacy.

While Texas attorneys have been upfront with their hope that the state’s newest courts will help raise Texas’ corporate law to Delaware’s level, corporate attorneys across the country are all but unanimous: Delaware remains the champ, and that’s not changing, at least not any time soon.

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Here’s what Texas attorneys are expecting from the state’s new business courts

Delaware Business Court Insider

The first handful of cases have been filed in Texas’ business courts, and Texas attorneys are looking forward to seeing how their dockets continue to unfold.

Many are optimistic about the courts’ potential but expect it will take at least a year to build up the jurisprudence that could make them a reliable venue for business litigation.

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Why corporate attorneys say Delaware courts aren’t pushing away their clients

Delaware Business Court Insider

Elements of Delaware law that affect large swaths of corporate litigation are in flux: Delaware’s application of entire fairness is evolving, as is how it defines conflict and control in transactions. The Court of Chancery has reviewed and invalidated advance notice bylaws, and lawyers have asked for guidance on just how much say shareholders get in converting out of Delaware.

All of those issues have raised questions that attorneys are waiting for the Delaware Supreme Court to address, which could mean guidance corporate lawyers give their clients in the interim may need to be revisited later. Litigators—especially those on the defense side—have expressed frustration, and some say Delaware now stands in shareholder-friendly opposition to Nevada’s deference to corporations.

But behind the scenes, corporate practitioners say, there’s been no signs that there will be any significant corporate exodus from Delaware in the near future, and it’s a concern that’s being closely watched but is rarely being mentioned in the boardroom, indicating companies like Tesla, TransPerfect and TripAdvisor are in the minority despite their conversions to Texas and Nevada grabbing attention.

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‘Mindbogglingly expansive’: Twitter blasts Musk’s discovery demands as parties blame each other in scheduling row

Delaware Business Court Insider

Twitter and Elon Musk indicated this week they’re at a standstill in scheduling dates for their broken deal trial, asking Chancellor Kathaleen McCormick to weigh in.

The Musk team claimed in a letter sent Tuesday that Twitter is intentionally holding up discovery in an effort to give Musk as little time as possible to analyze the data he’s requested, and Twitter fired back in a motion filed the next day that Musk has made setting dates impossible by making unreasonable requests and refusing to make any concessions to the other side.

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Web3 litigation is a regulatory waiting game in Delaware

Delaware Business Court Insider, Delaware Law Weekly

Web3 has raised countless questions about corporate entity structures and securities regulations, but attorneys specializing in the area don’t foresee most of them being answered in a Delaware court, at least not immediately.

That doesn’t mean those interested in Delaware corporate law shouldn’t pay attention to how those questions are resolved in other courts or by regulatory changes, with some cases involving decentralized autonomous organizations likely to show up in the Court of Chancery at some point.

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Civil rights attorneys: DSU lacrosse players may make a case in Georgia bus search

Delaware Law Weekly

The Delaware State University’s women’s lacrosse team may be able to make a case that their civil rights were violated when their bus was stopped and searched last month.

Civil rights attorneys have said since the incident came to light earlier this week that the majority Black team could make any of several claims at the federal level, mostly predicated on the idea that Georgia law enforcement officers searched the bus without probable cause.

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