Statements made by attorneys to inform corporate directors of a lawsuit’s status, but did not influence board actions, are protected by attorney-client privilege, the Delaware Court of Chancery has ruled.
The court blocked a motion to compel filed by attorneys who represented Quest Software Inc.’s shareholders in litigation over the company’s $2 billion buyout offer and later asked the court to order Quest’s attorneys to release their communications with the company as part of their efforts to recoup $2.8 million in attorney fees.
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