Mark D. Harris and Margaret A. Dale Chancery Court Dismisses Shareholder Derivative Suit Challenging Block's Acquisition of TIDAL
Delaware Chancery Court dismisses shareholder derivative suit challenging Block's acquisition of TIDAL—a music streaming company associated with Jay-Z—for failing to adequately plead demand futility.
July 28, 2023 at 11:03 AM
7 minute read
On May 9, a Delaware Chancery Court judge dismissed a derivative lawsuit seeking to hold former Twitter CEO Jack Dorsey and other board members at Block Inc. liable for the company's purchase of Jay-Z's music streaming service TIDAL. The decision stands as a reminder that even a poor business decision is not actionable on a derivative basis so long as a majority of disinterested and independent directors approved the action in good faith.
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