case United States English original

In re Walt Disney Co. Derivative Litigation

Delaware Supreme Court decision clarifying that bad faith, including intentional dereliction or conscious disregard of duty, sits within the duty of loyalty and can defeat business-judgment protection.

Use It For

Use this after Van Gorkom and Caremark to distinguish poor process, bad faith, and conscious disregard.

Teaching Notes

Students should avoid using Disney as a simple plaintiff victory. Its value is in the standard it articulates and the high bar it illustrates.