Delaware Chancery Court Circumscribes Director Liability for Failure of Oversight

March 03, 2009
A recent decision by the Delaware Chancery Court limits how far plaintiffs may go to hold directors personally liable for failing to anticipate and prevent corporate losses. In Citigroup Inc. Shareholder Derivative Litigation, a consolidated derivative action, the court dismissed all but one claim against current and former directors and officers of Citigroup Inc. This update examines the decision, which established a number of parameters for holding directors accountable.