The Delaware Supreme Court has partly vacated a Delaware Chancery Court decision and allowed the founder of a biopharmaceutical company to pursue fees and expenses in a related bad-faith fiduciary duties suit against corporate directors.
An October ruling by former Vice Chancellor Donald F. Parsons Jr. had initially blocked fee-shifting in the case under the bad-faith exception to the American Rule, in a case where the biopharmaceutical company, Genelux Corp., had tried to invalidate a stock issue that ousted company co-founder Aladar Szalay from the board but also allowed him to install two directors aligned with his interests.
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