A federal judge has invoked the Delaware Court of Chancery's seldom-used Gentile doctrine to allow a shareholder's dilution claims against a pharmaceutical company to proceed as a direct, not a derivative, claim.
U.S. District Judge Sue L. Robinson of the District of Delaware, in Fares v. Lankau, cited one aspect of the doctrine in ruling that the plaintiff's complaint should be handled as a direct claim. The Gentile doctrine, stated in 2006 but seldom used, has apparently been given new vitality by a Chancery Court decision issued in March.
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