Cactus Inc. was hit with a securities class action on May 24 in Delaware Court of Chancery. The suit, part of a string of similar cases filed by Block & Leviton and Abbott Cooper PLLC, pertains to a 'proxy access bylaw' requiring director-candidates nominated by stockholders who own 3% or more of stock to deliver irrevocable letters of resignation which become effective in the event of misrepresentation or breach of contract. The complaint alleges that the bylaw violates Delaware law by effectively allowing a removal of directors by other directors rather than shareholders. Counsel have not yet appeared for the defendant. The case is 2024-0561, Taylor v. Cactus Inc.
Delaware
May 28, 2024, 1:20 PM