Brehm v. Eisner

In Brehm v. Eisner (746 A2d 244 [Del. 2000]), the Delaware Supreme Court rejected the plaintiffs' claim of futility based upon reasonable doubt that the board action was the product of business judgment. The court stated that pre-suit demand will be excused in a shareholder derivative suit if the particularized facts in the complaint create a reasonable doubt that the informational component of the directors' decision making process, measured by concepts of "gross negligence," included consideration of all material information reasonably available.