Earlier this year the United States Courts of Appeals for the Seventh and Ninth Circuits each addressed the question of whether an exclusive forum provision adopted by a Delaware.
The Seventh Circuit issued a resounding message: Delaware forum selection clauses in corporate bylaws cannot lawfully prevent a plaintiff from bringing claims under the Securities.
The Seventh Circuit issued a resounding message: Delaware forum selection clauses in corporate bylaws cannot lawfully prevent a plaintiff from bringing claims under the Securities Exchange Act of 1934 (the Exchange Act or the Act) in federal court.
Seventh Circuit Strikes Down Delaware Forum Selection Clause natlawreview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from natlawreview.com Daily Mail and Mail on Sunday newspapers.
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We have discussed in previous alerts a spate of shareholder
lawsuits alleging corporate fiduciary breaches and securities law
violations tied to the defendant company s alleged failure to
fulfill diversity aspirations. (
Seehere and here.) In other alerts we have focused on
charter and bylaw forum selection provisions and related court
decisions which mandate that stockholders bring derivative and
breach of fiduciary claims in the Delaware Court of Chancery, but
also require that Securities Act of 1933 cases be filed in a
federal district court (and not a state court). (