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Expert Analysis

Forum Selection Bylaws Are Best Considered On A Clear Day

Law360, New York ( September 17, 2014, 9:53 AM EDT) -- "Exclusive forum" bylaws and charter provisions are a powerful tool for managing the risk of parallel corporate governance litigation against a company and its directors in multiple forums, allowing stockholders to bring such litigation but requiring that they bring it in one specified jurisdiction, typically the company's state of incorporation. The Delaware Chancery Court, in its 2013 Chevron decision, held that such provisions are generally enforceable,[1] and courts in several other states have dismissed stockholder litigation based on Delaware forum selection provisions.[2] As a result, more companies are adopting such provisions....

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