Teachers’ Retirement System of Louisiana and City of New Orleans Employees’ Retirement System, Derivatively On…

Summary

The Supreme Court of Delaware certified an unsettled question of New York law to the New York Court of Appeals concerning whether in pari delicto bars a corporation’s derivative professional-negligence claim against its outside auditor for failing to detect fraud by corporate officers. The Delaware court concluded that resolving the appeal depended on significant, determinative questions of New York law for which controlling precedent was unavailable and therefore took no further action pending the response to the certification request.