Article: Delaware Chancery Court Revisits Oversight Liability And Corporate Waste.

The Delaware Court of Chancery recently handed down what is likely to be an influential decision relating to oversight liability of directors and the doctrine of corporate waste. In re Citigroup Shareholder Derivative Litigation, C.A. No. 3338-CC, 2009 Del. Ch. LEXIS 25 (Feb. 24, 2009), involved claims brought by shareholders of Citigroup (the "Company") against current and former directors and officers of the Company, alleging various claims relating to the Company's subprime lending practices and investments that ultimately left the Company exposed to massive losses and also relating to excessive compensation practices. In the decision, the Court: (1) declined to hold ...

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