Delaware courts clear Citigroup and AIG

Author: | Published: 4 Mar 2009

Recent Delaware decisions lay the groundwork for business judgement suits applied to actions taken by companies before the housing mortgage crisis.

February decisions by the Chancery Court in American International Group, Consolidated Derivative Litigation and In re Citigroup Shareholder Derivative Litigation established the first requirements to deny and grant dismissals in business judgement claims relating to risk analysis.

“There are differences in the facts and in the arguments, but it shows what you can and can’t argue in the Delaware court,” said Alan Stone of...