Aronson v. Lewis

Citation

473 A.2d 805 (Del. 1984)

Facts

Stub — to be completed.

Issue

Stub — to be completed.

Holding

Stub — to be completed.

Rule

Demand on the board is excused as futile if the plaintiff alleges particularized facts creating a reasonable doubt that (1) the directors are disinterested and independent, or (2) the challenged transaction was otherwise the product of a valid business judgment.

Significance

Established the Aronson two-part test for demand futility in Delaware derivative suits; foundational for shareholder derivative litigation.

Courses