Kraft Heinz office. Credit: JHVEPhoto/Shutterstock Kraft Heinz Shareholders: Chancery Decision Misjudged Demand-Futility Standard
A lawyer for shareholders said said the demand-futility test, which was recently revamped, is meant to address the nature of directors' business relationships, not to cast aspersions on their integrity or loyalty to the company.
June 22, 2022 at 05:54 PM
3 minute read
The Delaware Supreme Court Wednesday considered arguments on whether The Kraft Heinz Co. directors were too intertwined with 3G Capital Inc. and Berkshire Hathaway to independently consider a litigation demand.
Joel Friedlander of Friedlander & Gorris argued for Kraft Heinz shareholders that Vice Chancellor Lori Will's decision to dismiss a derivative suit last year held directors to the wrong standard, while Andrew Ehrlich of Paul, Weiss, Rifkind, Wharton & Garrison said Will was right to find the standard for pleading demand futility hadn't been met, based on the test approved by the Supreme Court.
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