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Delaware Supreme Court Upholds Forum Selection Clause Provisions For Securities Act Claims

March 19, 2020
Firm Memoranda

On March 18, 2020, the Delaware Supreme Court issued its decision in Sciabacucchi v. Salzberg, which held that forum selection clauses contained within corporate charters requiring that certain securities claims be brought in federal court were facially valid under Delaware law. The decision has significant implications for securities actions going forward. First, the decision will likely stem the tide of securities class actions being filed in state court following the United States Supreme Court's decision in Cyan, Inc. v. Beaver County Employees Retirement Fund. Second, the decision may serve as a roadmap for proponents of arbitration clauses for securities litigation in corporate charters.

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If you have any questions about the issues addressed in this memorandum, or if you would like a copy of any of the materials mentioned in it, please do not hesitate to reach out to:
Rollo Baker
Phone: +1 212-849-7513

Jesse Bernstein
Phone: +1 212-849-7036