Simpson Thacher Attorneys Author Article on Delaware Chancery Court Decision Surrounding Duty of Oversight for Corporate Officers
02.08.23
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Litigation Partners Jonathan Youngwood, Nicholas Goldin and Stephen Blake authored an article titled “Corporate Officers, Not Just Directors, Can Be Liable for Duty of Oversight Violations,” which was published by the Harvard Law School Forum on Corporate Governance. The article details a recent Delaware Court of Chancery opinion, which will have significant implications for derivative lawsuits arising from corporate crises, ESG issues and financial challenges, and provides key takeaways for companies and corporate officers. In the opinion, Vice Chancellor Laster denied a motion to dismiss a derivative lawsuit, In re McDonald’s Corp. S’holder Derivative Litig., which alleges that the former head of human resources for McDonald’s breached his fiduciary duties by consciously ignoring red flags regarding sexual harassment and misconduct at the company and personally engaging in sexual harassment.
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