The Delaware Court of Chancery on Monday dismissed a shareholder’s derivative suit against the directors of social gaming company Zynga Inc. for failing to show that making a demand on the board to initiate litigation would have been futile.
In so ruling, Chancellor Andre G. Bouchard employed a Rales analysis for all three counts brought by the shareholder, Thomas Sandys, back in 2014. He found, in part, that changeover on Zynga’s board between the challenged transaction and the time the complaint was filed precluded an inference that the majority of the new board could have been interested or dependent when Sandys’ demand would have been made.
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