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Delaware Supreme Court Green Lights Federal-Forum Charter Provisions  

Author:  Roger A. Cooper.; Jared Gerber.; Mark E. McDonald.; Leslie N. Silverman.

Source: Volume 53, Number 13, July 15 2020 , pp.161-164(4)

Review of Securities & Commodities Regulation

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The Delaware Supreme Court, sitting en banc, recently unanimously upheld charter provisions of three Delaware corporations requiring stockholder plaintiffs to litigate claims under the Securities Act of 1933 in federal court. The authors discuss the background of the case and the reasoning of the opinion. In their takeaways, they suggest that Delaware corporations should consider the “obvious” benefits of such federal-forum selection provisions, but they note that there are a number of open questions to be considered.

Keywords: Federal-Forum Provisions (“FFP”); Sciabacucchi v. Salzberg

Affiliations:  1: Cleary Gottlieb Steen & Hamilton LLP; 2: Cleary Gottlieb; 3: Cleary Gottlieb; 4: Cleary Gottlieb.

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