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California Supreme Court

Nov. 20, 2024

A pivotal moment for shareholder rights

The California Supreme Court is weighing EpicentRx, Inc. v. Superior Court, a case that could let shareholders bring corporate misconduct claims before a California jury. A ruling for shareholders would challenge the enforceability of bylaws requiring such cases to be heard exclusively in Delaware's Court of Chancery, blocking corporate defendants from dismissing these cases in California courts.

Anya J. Freedman

Partner, Bernstein Litowitz Berger & Grossman LLP

Shutterstock

EpicentRx, Inc. v. Superior Court, now pending before the California Supreme Court (S282521), may empower shareholders to hold corporate insiders accountable for corporate misconduct by allowing civil claims to be tried before a California jury.

In EpicentRx, the 4th District Court of Appeal ruled that forum selection clauses in corporate bylaws designating the Delawa...

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