A first-of-its-kind ruling in a case against AmerisourceBergen Corp. could give investors more time to hold corporate leaders accountable for their company operations.
The Delaware Chancery Court applied a new framework for evaluating allegations of wrongdoing over a long period of time: Treat the alleged instances of a wrongful act as part of a sequence, and then each instance gives rise to a separate statute of limitations.
That means shareholders may have more leeway to file claims of a fiduciary breach of duty against the leaders or board members of drug companies, banking institutions, or other corporate entities, legal scholars say. Such claims, alleging that a board failed to engage in adequate oversight or ignored red flags over many years, are commonly referred to as Caremark claims.
Source: AmerisourceBergen Spat Gives Investors Edge in Corporate Suits
