Francis Pileggi Quoted in Delaware Business Court Insider Article on Oversight Standards for Company Officers
Wilmington, Del. (February 3, 2023) - Wilmington Managing Partner Francis G.X. Pileggi recently spoke with the Delaware Business Court Insider (DBCI) (part of Law.com) for an article, titled, “'It's Really Created a Buzz': Could McDonald's Decision Expand Scope for 'Caremark' Litigation?,” which discusses a recent Delaware Court of Chancery decision holding that company officers can be held to the same oversight standards as directors.
As the article describes, many attorneys believe that the court’s decision over McDonald's officers' liability for fostering a climate of sexual harassment is not necessarily new law. Instead, they view the decision as official confirmation of “a standard that’s been generally understood for years,” although it is “the first to explicitly state that standard applies specifically to oversight claims. . . .”
Mr. Pileggi told DBCI, “I don’t think it’s new law. I think it’s just a logical extension of existing law. . . . Having said that, I don’t think it would be a shock if some attorneys use this as a way to be more aggressive about claims against certain officers.” Providing the article's title quote, he added, “It’s really created a buzz to the extent that everyone is writing about it and talking about it. . . . If that’s any indication that it’s a very momentous, consequential opinion that is going to have an impact for many, many years to come.”
Mr. Pileggi is a member of Lewis Brisbois’ Complex Business & Commercial Litigation Practice. He focuses primarily on high-stakes disputes of corporations, stockholders, members of boards of directors, members and managers of LLCs, and those with managerial or ownership interests in other forms of entities. In addition, since 2004, Mr. Pileggi has maintained the Delaware Corporate & Commercial Litigation Blog, at www.delawarelitigation.com, in which he analyzes key corporate and commercial decisions from Delaware's Supreme Court and Court of Chancery.
Read the full DCBI article here and see Mr. Pileggi’s quote in the “What You Said” section of ALM’s Morning Minute Briefing here (subscription may be required).
Francis PileggiManaging Partner