On March 15, 2013 the Delaware Chancery Court approved a $16.25 million settlement of claims that officers and directors of Toll Brothers Inc. (TOL), a luxury homebuilder, breached their fiduciary duties by making false statements and trading on inside information. The case settled after plaintiff’s counsel reviewed over 70,000 pages of documents and took nineteen depositions. In the course of the case we obtained a key ruling rejecting defendants’ arguments that Delaware’s leading insider trading precedent, Brophy v. Cities Service Co., 70.A.2d 5 (Del. Ch. 1949) was outdated and should be overruled.
Read the full opinion, Pfeiffer v. Toll, 989 A.2d 683 (Del. Ch. 2010)