Griffith v. Stein

Summary

The Court reversed approval of a derivative-litigation settlement because its release extended to future compensation claims arising from a compensation plan that had not yet been approved and was not part of the underlying litigation. The Court held that Delaware does not require an express adequacy finding before approving a derivative settlement under the existing court rule, although it identified adequacy as a matter warranting possible rulemaking. The Court also affirmed the Court of Chancery's exercise of discretion in awarding fees for the successful objection to the earlier settlement.