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SANDYS v. PINCUS

No. 157, 2016.

152 A.3d 124 (2016)

Thomas SANDYS, Derivatively on Behalf of Zynga Inc., Plaintiff below, Appellant, v. Mark J. PINCUS, Reginald D. Davis, Cadir B. Lee, John Schappert, David M. Wehner, Mark Vranesh, William Gordon, Reid Hoffman, Jeffrey Katzenberg, Stanley J. Meresman, Sunil Paul And Owen Van Natta, Defendants below, Appellees, and Zynga Inc., a Delaware Corporation, Nominal Defendant below, Appellee.

Supreme Court of Delaware.

Decided: December 5, 2016.

Attorney(s) appearing for the Case

Norman M. Monhait, Esquire , P. Bradford deLeeuw, Esquire , Rosenthal, Monhait & Goddess, P.A., Wilmington, Delaware; Jeffrey S. Abraham, Esquire , (Argued), Philip T. Taylor, Esquire , Abraham, Fruchter & Twersky, LLP, New York, New York, Attorneys for Plaintiff-Below, Appellant, Thomas Sandys.

Elena C. Norman, Esquire , Nicholas J. Rohrer, Esquire , Paul J. Loughman, Esquire , Young Conaway Stargatt & Taylor LLP, Wilmington, Delaware; Jordan Eth, Esquire , Anna Erickson White, Esquire , (Argued), Morrison & Foerster LLP, San Francisco, California, Attorneys for Defendants-Below, Appellees, Mark J. Pincus, Reginald D. Davis, Cadir B. Lee, John Schappert, David M. Wehner, Mark Vranesh, and Owen Van Natta, and Zynga Inc.

Bradley D. Sorrels, Esquire , Jessica A Montellese, Esquire , Wilson Sonsini Goodrich & Rosati, P.C., Wilmington, Delaware; Steven M. Schatz, Esquire , (Argued), Nina (Nicki) Locker, Esquire , Benjamin M. Crosson, Esquire , Wilson Sonsini Goodrich & Rosati, P.C., Palo Alto, California, Attorneys for Defendants-Below, Appellees, William Gordon, Reid Hoffman, Jeffrey Katzenberg, Stanley J. Meresman, and Sunil Paul.

Before STRINE, Chief Justice; HOLLAND, VALIHURA, VAUGHN, and SEITZ, Justices, constituting the Court en Banc.

I.

This appeal in a derivative suit brought by a stockholder of Zynga, Inc. turns on whether the Court of Chancery correctly found that a majority of the Zynga board could impartially consider a demand and thus correctly dismissed the complaint for failure...

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