Documents: Desimone v. Barrows, C.A. No. 2210-VCS, Strine, V.C. (Del. Ch. June 7, 2007)
The Court dismissed a derivative action regarding the backdating of stock options where (i) the plaintiff lacked standing to complain about options granted before they were a stockholder; (ii) the plaintiff failed to adequately plead demand futility and the directors did not face personal liability for the wrongs alleged as the options were granted to employees and officers and it was not alleged that the board knew of the backdating; and (iii) the plaintiff failed to state claim as to stock options granted every year at the annual meeting pursuant to a stockholder approved compensation plan.