Heineman v. Datapoint Corp.

WALSH, Justice:

This is an appeal from the Court of Chancery’s dismissal of a stockholder’s derivative suit alleging corporate waste and breach of fiduciary duty. The court dismissed the plaintiff’s amended complaint for failure to allege with particularity facts sufficient to excuse demand that the corporation’s board of directors prosecute this action. The court also denied the stockholder permission to amend his complaint a second time. We reverse the Court of Chancery’s dismissal of the amended complaint and remand for further proceedings, to include the opportunity to further amend the…