The Delaware Supreme Court affirmed a Court of Chancery ruling that a software company CEO was validly removed from his position by the company’s directors. Although the Chancery Court dismissed the case under the doctrine of laches, the Supreme Court said that the CEO’s removal was also valid under the doctrine of acquiescence.
An en banc Supreme Court that included Delaware Superior Court Judge Mary M. Johnston, who sat by designation for Chief Justice Leo E. Strine Jr., issued the opinion in Klaassen v. Allegro Development. The high court’s ruling affirmed a November 2013 decision by Chancery Court Vice Chancellor J. Travis Laster. When the case appeared before Laster, it had the same caption.
