One of the more interesting recent developments in the world of corporate and securities litigation has been the litigation reform bylaw movement. Among the types of bylaws with which various companies have experimented are the forum selection bylaws (now permitted by statute in Delaware) and fee-shifting bylaws (now prohibited in Delaware for stock corporations, as discussed here). Yet another type of litigation reform bylaw that has attracted attention is the minimum stake to sue bylaw, which requires shareholder claimants to show that the represent a specified interest of the company’s ownership interest in order to be able to pursue a class or derivative claim.
Continue Reading Lawsuit Challenging Minimum Stake to Sue Bylaw Dismissed
Another Litigation Reform Bylaw Variant: The Minimum Stake to Sue Bylaw
In prior posts, I have noted the growing phenomenon of companies adopting various types of bylaws as a self-help version of litigation reform. Delaware’s courts have already approved the facially validity of both forum-selection bylaws and of fee-shifting bylaws, although measures pending in Delaware legislature in 2015 could address the fee-shifting bylaw. Other