Firm Memoranda

Delaware Court Denies Another Motion to Dismiss a Caremark Claim Against Directors

Date: 11/04/19

On October 1, 2019, in In re Clovis Oncology, Inc. Derivative Litigation, the Court of Chancery of Delaware denied a motion to dismiss a claim against members of the board of Clovis Oncology, Inc. (“Clovis” or the “Company”) alleging that the directors breached their fiduciary under Caremark by failing to oversee the Company’s clinical drug trials. The Court found that the plaintiffs satisfied the Caremark standard, which requires a plaintiff to provide particularized facts in a well-pled complaint “that either (i) the directors completely failed to implement any reporting or information system or controls or (ii) having implemented such a system or controls, consciously failed to monitor or oversee its operations thus disabling themselves from being informed of risks or problems requiring their attention.”

Delaware Court Denies Another Motion to Dismiss a Caremark Claim Against Directors.pdf (pdf | 95.98 KB )