In a seemingly routine discovery order issued in the Maxim stock-option backdating case, the Delaware Court of Chancery recently issued a decision that could have major ramifications for special committee practice. Ryan v. Gifford, No.2213-CC (Del. Ch. Nov. 30, 2007). Chancellor Chandler concluded that a special committee waives the attorney-client privilege protecting its communications with counsel when the committee reports its findings to the full board of directors, certain of whose members were alleged wrongdoers.
For a detailed discussion of the decision by John L. Reed and Gail Elise Abbey of EAPD’s Securities and Government Enforcement Group, please click here.
For a full copy of the decision, please click here.
