The Metropolitan Corporate Counsel Interview: The Last Word on Disclosure of Projections Under Delaware Law
"Over the past year the Delaware Court of Chancery has issued three decisions and one bench ruling on whether certain types of information, particularly financial projections, are material and thus must be disclosed to the shareholders. As an initial matter, it should be noted that under Delaware law information is material if there is a substantial likelihood that a reasonable shareholder would consider it important in deciding how to vote. These four rulings, Netsmart, CheckFree, Globis Partners and BEA Systems, indicate that a context-specific analysis, and not a single legal standard, is necessary to determine whether projections are material in a specific case under Delaware law."
Lauren Kornsey, Senior Manager, Marketing and Business Development
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Potter Anderson & Corroon LLP is one of the largest and most highly regarded Delaware law firms, providing legal services to regional, national, and international clients. With more than 90 attorneys, the firm’s practice is centered on corporate law, corporate litigation, intellectual property, commercial litigation, bankruptcy, labor and employment, and real estate.