Qualcomm Board Wins Dismissal of Shareholder Derivative Lawsuit Related to Antitrust Claims
August 03, 2016
On August 1, 2016, Vice Chancellor Tamika R. Montgomery‑Reeves of the Delaware Court of Chancery dismissed a shareholder derivative lawsuit brought derivatively on behalf of Qualcomm Incorporated (“Qualcomm”) against the Board of Directors of Qualcomm. The lawsuit alleged that the Qualcomm Board breached its fiduciary duties by ignoring purported “red flags” which supposedly showed that Qualcomm was violating international competition law. Plaintiff did not demand that the Board pursue its claims before bringing this action, claiming that would be futile because a majority of the Directors faced a substantial likelihood of personal liability as to the underlying claims. In granting the dismissal, Vice Chancellor Montgomery‑Reeves held that the complaint did not plead sufficient facts to infer that the Directors faced a substantial likelihood of personal liability or that they acted in bad faith.
The Cravath team, which represented the Board, included partner Rachel G. Skaistis, who argued the motion to dismiss, and associates Leslie W. Regenbaum and Kimberly M. Jeffers. The case is Melbourne Municipal Firefighters’ Pension Trust Fund v. Paul E. Jacobs, et al., No. 10872‑VCMR (Del. Ch.).
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J.D., 1997, Cornell Law Schoolcum laude
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