• Dispatches from the Battleground: Will Fee-Shifting Bylaws Keep Shareholders from the Courthouse?
  • July 1, 2015 | Author: Edward G. Timlin
  • Law Firm: Bernstein Litowitz Berger & Grossmann LLP - New York Office
  • As discussed in the last edition of The Advocate, the Delaware Supreme Court’s May 8, 2014 ruling in ATP Tour, Inc. v. Deutscher Tennis Bund, 91 A.3d 554 (Del. 2014) presents a serious threat to meritorious stockholder litigation. ATP held that a non-stock corporation could adopt a bylaw “shifting” its attorneys’ fees and expenses to any member that brought a lawsuit against the corporation (or its directors and officers) and failed to achieve “substantially all” of the relief sought.