O’Melveny Worldwide

Insights: The Corporate & Securities Law Advisor: Officer Oversight Liability: Insights from the McDonald’s Decision

April 1, 2023

O’Melveny partners Nate Gallon and Amy Park co-authored this article discussing the Delaware Court of Chancery’s decision in In re McDonald’s Corporation Stockholder Derivative Litigation, which addressed the fiduciary duties of Delaware corporation officers and how they are comparable to the duty of directors. “Given prior rulings in Delaware courts with respect to the duty of oversight and officer fiduciary duties, the McDonald’s opinion is not a surprise or a break from Delaware precedent. Rather, it is a clarification and refinement of precedent and provides practical guidance for officers, companies and legal counsel on how officers can satisfy their oversight obligations,” the authors wrote.

Read the full article here.