To Assess New Board Committeeâs Motion To Dismiss Claims Being Pursued By A Previously Established Special Committee
USA
December 22 2020
On December 14, 2020, Chancellor Andre G. Bouchard denied a motion to dismiss a lawsuit by a special committee of the board of The We Company (the “Company”) against the Company’s new controlling stockholder and its affiliates (collectively, the “New Controller”).
In Re WeWork Litigation, C.A. No. 2020-0258-AGB (Del. Ch. Dec. 14, 2020). After the New Controller acquired control in a multi-step transaction, the Company’s board established a new committee, which determined that the special committee lacked authority to continue the suit and directed management to move to dismiss. The Court noted that this presented an issue of first impression. The Court determined to engage in an analysis akin to that developed for assessing special committee motions to dismiss derivative claims under