City of Birmingham Retirement & Relief System v. Good

SEITZ, Justice,

for the Majority:

A stormwater pipe ruptured beneath a coal ash pond at Duke Energy Corporation’s Dan River Steam Station in North Carolina. The spill sent a slurry of coal ash and wastewater — containing lead, mercury, and arsenic — into the Dan River, fouling the river for many miles downstream. In May 2015, Duke Energy pled guilty to nine misdemeanor criminal violations of the Federal Clean Water Act and paid a fine exceeding $100 million. The plaintiffs, stockholders of Duke Energy, filed a derivative suit in the Court of Chancery against certain of Duke Energy’s directors…