Tooley v. Donaldson, Lufkin, & Jenrette, Inc.

VEASEY, Chief Justice:

Plaintiff-stockholders brought a purported class action in the Court of Chancery, alleging that the members of the board of directors of their corporation breached their fiduciary duties by agreeing to a 22-day delay in closing a proposed merger. Plaintiffs contend that the delay harmed them due to the lost time-value of the cash paid for their shares. The Court of Chancery granted the defendants’ motion to dismiss on the sole ground that the claims were, “at most,” claims of the corporation being asserted derivatively. They were, thus, held not to be direct claims of…