Rock Holdings Prevails in Chancery Derivative Suit

On Monday, June 2, 2025, the Delaware Court of Chancery ruled in favor of Morris Nichols client Rock Holdings Inc. (RHI), dismissing a stockholder derivative action asserting a “Brophy”/insider trading claim.  The court found that plaintiffs failed to meet the burden of proof required to prove a Brophy claim.  The Morris Nichols team of Bill Lafferty and Ryan Stottmann worked together with co-counsel Sullivan & Cromwell to achieve this positive result for RHI following a three-day trial in May 2024.