Equity May Allow a Pro Rata Recovery in a Derivative Action [Delaware Business Court Insider]

The recovery in a derivative action generally goes to the corporation, but that rule is not absolute. Treatises and commentators have recognized that courts will grant pro rata recoveries where the equities demand it. Barry Klayman and Mark Felger, writing in the Delaware Business Court Insider, review a recent decision by the Court of Chancery in which Vice Chancellor Laster discussed the circumstances under which the court might allow a pro rata recovery in the context of a derivative action. 

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Mark E. Felger

Co-Chair, Bankruptcy, Insolvency & Restructuring


(302) 295-2087

Barry M. Klayman

Of Counsel


(302) 295-2035

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