Archive:April 16, 2020

By: Scott Waxman and Rich Minice

In Sider et al. v. Hertz Global Holdings, Inc., C.A. No. 2019-0237-KSJM; C.A. No. 2019-0240-KSJM; C.A. No. 2019-0243-0243-KSJM; CA. No. 2019-0246-KSJM (Del. Ch. June 17, 2019), the Delaware Court of Chancery re-affirmed its support for advancement consistent with corporate bylaw provisions and denied the Hertz Global Holdings, Inc. (the “Defendant”) motion seeking immediate appellate review of advancement entitlement. The Court held that Defendant’s concern that plaintiffs would be unable to repay any advanced expenses, which they could later be found not to have been entitled to, did not outweigh Delaware’s preference for advancement. Defendant’s recourse for recouping advanced expenses is via “indemnification or on appeal after issues of reasonableness have been resolved.”