Delaware Supreme Court Revives Zynga Suit, Provides Guidance On Director Independence

The Delaware Supreme Court recently revived a lawsuit against the controlling shareholder of Zynga Inc. and other board members for allegedly breaching their duties to the online gaming company and allowing leaders to dump stock in a 2012 offering. The decision is Sandys v. Pincus deals with a fundamental issue in corporation law: director independence. The court’s holding should be given careful consideration by boards of directors of companies facing stockholder derivative lawsuits. Read more.