Financial Times FT.com

Investors get go-ahead to sue directors

By Francesco Guerrera and Brooke Masters in New York

Published: February 15 2007 19:41 | Last updated: February 16 2007 02:21

Directors of US companies involved in the options backdating scandal could be vulnerable to lawsuits and damage claims from disgruntled shareholders following two decisions by an influential Delaware court.

The recent rulings by the Chancery Court of Delaware, the state where most US companies are registered, are likely to make it easier for investors to press forward with cases alleging that directors’ approval of backdated stock options breached their fiduciary duty towards shareholders.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this