The Delaware Supreme Court, in a short Order issued not long after oral argument, rejected the arguments on appeal that challenged a decision of the Court of Chancery that dismissed claims that directors were beholden to those that they had business relationships with. Greater Pennsylvania Carpenters’ Pension Fund v. Giancarlo, et al., No. 531-2015, Order issued (Del. Mar. 11, 2016).
Frank Reynolds of Thomson Reuters provides helpful insights and more details on the case in an article. Frank writes that:
… the plaintiffs’ bid for a reversal faced long odds with the Delaware Supreme Court’s recent track record of quickly rejecting emergency appeals in cases such as this that were dismissed for failure to clear procedural hurdles like the pre-suit-demand requirement.
Over the past several months, the high court has summarily affirmed the dismissal of high-profile shareholder suits in one-page orders often issued the day after oral argument was held. For example, within 24 hours, the justices tossed an appeal in a suit that claimed GM Co.’s directors negligently failed to respond quickly to reports of fatal ignition switch failures. In re GM Co. Derivative Litig., No. 392, 2015, order issued (Del. Feb. 11, 2016).