On April 27, 2020, Vice Chancellor J. Travis Laster of the Delaware Court of Chancery denied defendants’ motion to dismiss because a demand on Kandi Technologies Group, Inc. (“Kandi”) board of directors would have been futile. In doing so, the Vice Chancellor found that plaintiff’s complaint supported “a reasonable pleading-stage inference of a bad faith failure of oversight by the named director defendants.” Further, the Vice Chancellor determined that a majority of the board faced a substantial threat of liability and would be incapable of disinterestedly considering a demand, rendering it futile. The remainder of defendants’ motion was denied because it was premised on the same arguments and, thus, “the analysis under Rule 23.1 [was] dispositive.”
A copy of Vice Chancellor Laster’s Opinion is attached.
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About Michael Van Gorder
Michael Van Gorder's practice is focused on securities litigation. Michael is a Partner in the firm's Delaware office. Prior to joining F&F, Michael served as a law clerk to the Honorable James T. Vaughn, Jr. of the Delaware Supreme Court (2015-16). While attending law school, Michael served as the Editor-in-Chief of the Delaware Journal of Corporate Law and was selected as a Josiah Oliver Wolcott Fellow with the Delaware Supreme Court. Before law school, Michael worked in the private bank of a global financial services firm where he held multiple securities licenses.Michael has authored the following article: Boilermakers v. Chevron: Are Board Adopted Arbitration Bylaws Valid Under Delaware's General Corporation Law?, 39 Del. J. Corp. L. 443 (2014).Michael received his J.D., magna cum laude, from Widener University School of Law (2015). Michael received his B.S., Business Management, 2008; M.B.A., Finance, 2011, from Wilmington University. Michael is licensed to practice law in the state of Delaware and is admitted to the United States District Court of Delaware.