Chicago judge applies updated Delaware test for shareholder derivative complaint

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted May 3, 2023 9:39 AM

Applying an updated version of the Delaware Supreme Court’s “three-part universal test” for demand futility, a federal judge in Chicago tossed a shareholder derivative complaint against the directors of The Kraft Heinz Co.A Delaware corporation, Kraft Heinz is the offspring of the 2015 merger of Kraft Foods Group and The H.J. Heinz Co.Routine proclamations about “savings from efficiencies and synergies” accompanied the merger. But the financial wizards who engineered the transaction allegedly imposed “harmfully aggressive …

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