Aleynikov v. Goldman Sachs Group, Inc.: U.S. District Court Finds Broad Scope of Advancement of Legal Fees under Delaware Law
Date: 12/23/13
Often corporate bylaws relating to indemnification and advancement of legal fees to directors and officers are drafted broadly to provide assurances that these corporate officials will not be required to expend personal funds in defending a suit or proceeding. The ramifications of this breadth generally go unrealized until matters run awry, after litigation ensues and the issue of legal costs is thrust to the forefront. A recent decision of the U.S. District Court for the District of New Jersey, Aleynikov v. Goldman Sachs Group, Inc., gives Delaware corporations good reason to conduct a thorough review of these policies on a regular basis.
CGR Memo - U S District Court Finds Broad Scope of Advancement of Legal Fees under Delaware Law.pdf (pdf | 153.18 KB )