Dismissal Based on Failure to Make Presuit Demand
In Highland Legacy Limited v. Singer, download file, the Delaware Chancery Court granted a Motion to Dismiss pursuant to Chancery Court Rule 23.1 for failure to make presuit demand in connection with a claim that excessive payments were made to friends and affiliates of directors. The court discussed at length the two-prong Aronson test and found that the plaintiffs did not demonstrate particularized facts to show a lack of independence or lack of disinterest of a majority of the directors; and did not rebut the presumptions of the business judgment rule.
