The Delaware Chancery Court supported a corporation’s right to include an exculpatory provision barring claims for monetary liability against directors for breaches of the duty of care in a decision earlier this month.
Vice Chancellor Donald F. Parsons Jr. dismissed a suit filed against Alloy Inc., an entertainment company incorporated in Delaware. The vice chancellor ruled the plaintiffs, a pension fund and private investor, failed to state a claim for damages because they sought monetary relief, and Alloy’s certificate of incorporation includes an exculpatory provision barring monetary liability claims against its directors for breaches of the duty of care.
