Chancery Court Decision Provides Guidance on Multiforum Litigation

May 25, 2016

Publication| Corporate & Chancery Litigation

In In re Wal-Mart Stores Delaware Derivative Litigation, C.A. No. 7455-CB (Del. Ch. May 13, 2016), the DelawareCourt of Chancery held that an order of the U.S. District Court for the Western District of Arkansas dismissing anArkansas complaint precluded Delaware plaintiffs from litigating demand futility in a Delaware derivative actionchallenging the same underlying conduct. Although the Court of Chancery’s opinion primarily involves an analysis ofthe requirements for issue preclusion under Arkansas law, it also provides important guidance on multiforumlitigation for Delaware corporations and practitioners.

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