Archive:March 15, 2019

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Court of Chancery Invalidates Charter-Based Federal Forum Provision

Court of Chancery Invalidates Charter-Based Federal Forum Provision

By Michelle R. McCreery and Shane T. Devins

In Matthew Sciabacucchi v. Matthew B. Salzberg, et al., C.A. No. 207-0931-JTL (Del. Ch. Dec. 19, 2018), the Court of Chancery invalidated a provision in the charter documents of certain Delaware corporations that specified the federal courts as the exclusive forum for claims arising under the Securities Act of 1933 (the “1933 Act”).

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