Parfi Holding AB v. Mirror Image Internet, Inc.

OPINION

STRINE, Vice Chancellor.

I. Introduction

This opinion addresses several important issues in this case.

The first and most troubling is what consequences should attach when plaintiffs in a derivative action mislead the court about the reasons for their failure to take certain actions relevant to the case. The record reveals that a plaintiff who wished to have this court lift a stay that was in place pending the completion of a closely related arbitration made false representations of fact to this court about why it had faüed to prosecute the arbitration on the schedule it had previously…