Tagged: Caremark

Delaware Court Increases Scrutiny of Corporate Board Oversight and Monitoring of Compliance Programs

On October 1, 2019, in In re Clovis Oncology, Inc. Derivative Litigation (here), a Delaware Chancery Court denied a motion to dismiss the plaintiffs’ claims under the Caremark decision against individual directors for failing to monitor the development of the biotech firm’s experimental drug and allowing it to permit inflated performance results.  The Court’s decision was the second opinion issued by the Delaware courts in...

Board Members Should Take Note — Delaware Supreme Court Issues Important Decision on Caremark Compliance Standard

I have long predicted that corporate board members are in for a rude awakening. (See posts here and here and ebook here) Corporate boards have to improve their ability and knowledge surrounding supervision and monitoring of a company’s ethics and compliance program.  Most corporate boards have little to no knowledge about what compliance is, how it works, and what their precise obligations are as part...