Document: In Re Tyson Foods, Inc. Consol. S’holders Litig., Consol. C.A. No. 1106-CC, Chandler, C. (Del. Ch. Aug. 15, 2007)

The Court, on a motion for judgment on the pleadings by the corporation’s outside directors, refused to dismiss fiduciary duty claims related to “spring-loaded” stock options based solely on the board’s technical compliance with the stock option plan.  The Court held that where it “may reasonably infer” that directors who did not disclose that options were timed before positive press releases, may not have acted in a manner consistent with their duty of candor.