McDonald’s court ruling turns up heat on corporate executives

McDonald’s court ruling turns up heat on corporate executives | Financial Times

McDonald’s court ruling turns up heat on corporate executives | Financial Times

✒ “The lawsuit relies on the so-called Caremark doctrine, referring to a 1996 Delaware decision involving shareholders suing the directors of a healthcare company over a costly fraud scandal. The Caremark decision held that boards of directors retained a duty of oversight over their companies.

The McDonald’s decision widened the scope of Caremark claims beyond wrongdoing that affects a company’s core business, as well as beyond the duties of just board members, according to University of California law professor Steve Bainbridge, who has been critical of the proliferation of such actions.”