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...