Brandon R. Harper of Duane Morris. Courtesy photo Derivative Suit Claiming Directors Breached Duty of Oversight in Alleged 'Overfilled and Overbilled' Insulin Scheme Dismissed
In a recent memorandum opinion dismissing a suit brought by stockholders derivatively on behalf of Walgreens Boots Alliance, Inc. (Walgreens), Vice Chancellor Lori Will of the Delaware Court of Chancery issued a reminder of the "narrow confines" in which a successful Caremark claim lives.
March 06, 2024 at 09:00 AM
8 minute read
Contributors
In a recent memorandum opinion dismissing a suit brought by stockholders derivatively on behalf of Walgreens Boots Alliance, Inc. (Walgreens), Vice Chancellor Lori Will of the Delaware Court of Chancery issued a reminder of the "narrow confines" in which a successful Caremark claim lives. The suit, based on allegations that the pharmacy company's board of directors (the board) ignored an alleged scheme involving overfilled insulin pen prescriptions and overbilled government health programs, failed to show the board acted with bad faith—a necessary condition to director oversight liability. The opinion serves as a practical reminder to Court of Chancery litigants that a successful Caremark claim is rare, and the case brought by the Walgreens stockholders was "an unexceptional member of this broader group" of failed oversight claims.
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