Richards Layton & Finger
 

Chancery Court Decision Provides Guidance on Multiforum Litigation

May 25, 2016

In In re Wal-Mart Stores Delaware Derivative Litigation, C.A. No. 7455-CB (Del. Ch. May 13, 2016), the Delaware Court of Chancery held that an order of the U.S. District Court for the Western District of Arkansas dismissing an Arkansas complaint precluded Delaware plaintiffs from litigating demand futility in a Delaware derivative action challenging the same underlying conduct. Although the Court of Chancery's opinion primarily involves an analysis of the requirements for issue preclusion under Arkansas law, it also provides important guidance on multiforum litigation for Delaware corporations and practitioners.