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Fee-Shifting Bylaws–Novel Protection from Stockholder Litigation

    Client Alerts
  • May 16, 2014

Here’s one to keep an eye on. Just last week, the Delaware Supreme Court (ATP Tour, Inc. v. Deutscher Tennis Bund) held that fee-shifting provisions in a corporation’s bylaws are facially valid and enforceable against stockholder plaintiffs under Delaware corporate law. This ruling has the potential to tilt the balance of stockholder litigation significantly in favor of Delaware corporate defendants.

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