Any fears that the Delaware Supreme Court might be backing off its traditional protection of corporate directors were categorically put to rest earlier this month by a decision reinforcing the high standard that must be met to sue directors for failing to exercise sufficient oversight.
According to experts, the ruling in the case—Stone v. Ritter—is likely to have implications for litigation over stock option backdating, as well as other types of shareholder and derivative litigation. And some say the court’s conclusions will not necessarily warm the hearts of governance advocates.
