The Delaware Supreme Court has affirmed the Court of Chancery’s dismissal of a lawsuit filed by an XTO Energy Inc. shareholder who alleged that the oil and gas company wasted corporate assets by not adopting a plan to make its executive bonuses tax-deductible. In reaching its decision, the high court held that XTO’s decision not to adopt the plan was protected by the business judgment rule.
The en banc court, which included Superior Court President Judge James T. Vaughn Jr., who sat by designation for Chief Justice Myron T. Steele, issued the ruling inFreedman v. Adams , a Monday decision. Vice Chancellor John W. Noble issued the initial opinion in the litigation in a March 2012 ruling.
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