K. Tyler O'Connell of Morris James. In New AmerisourceBergen Decision, Chancery Applies 'Separate Accrual' Laches Analysis for 'Caremark' Red-Flags Claims
The Delaware Court of Chancery largely rejected arguments that laches barred fiduciary duty claims against AmerisourceBergen's directors and officers for acting in bad faith by disregarding red flags in safety reporting and monitoring systems and knowingly operating the business in a manner to violate positive law.
December 28, 2022 at 09:00 AM
6 minute read
Contributors
In the latest Delaware corporate decision concerning AmerisourceBergen's role in the nation's opioid epidemic, the Delaware Court of Chancery largely rejected arguments that laches barred fiduciary duty claims against AmerisourceBergen's directors and officers for acting in bad faith by disregarding red flags in safety reporting and monitoring systems and knowingly operating the business in a manner to violate positive law. See Lebanon County Employees' Retirement Fund v. Collis, 2022 WL 17687848 (Del. Ch. Dec. 15, 2022). Addressing an issue of first impression, Vice Chancellor J. Travis Laster applied a "separate accrual" analysis, which regards "a series of related decisions and conscious nondecisions as a sequence of wrongful acts, each of which gives rise to a separate limitations period."
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