Cornerstone Research hosted a virtual presentation by Professor Joseph Grundfest of Stanford Law School.
In a timely presentation, Joseph Grundfest discussed the Delaware Supreme Court’s March 18, 2020, decision in Salzberg v. Sciabacucchi on federal forum provisions (FFPs). The virtual presentation was given on March 19, 2020.
Professor Grundfest is the former Commissioner of the Securities and Exchange Commission. He was joined in this discussion by William Chandler, former Chancellor of the Delaware Court of Chancery, who litigated Salzberg v. Sciabacucchi, and by Priya Huskins, of the insurance brokerage Woodruff Sawyer.
An audio recording of Professor Grundfest, Chancellor Chandler, and Ms. Huskins is available below.
In this closely watched case, the Delaware Supreme Court unanimously found that FFPs are valid under Delaware law, overturning a previous decision by the Court of Chancery. Professor Grundfest invented the FFP, and his model FFP language, known as the Grundfest Solution, was expressly held valid by the Delaware Supreme Court’s opinion. In addition, data from Cornerstone Research’s Securities Class Action Filings—2019 Year in Review, which document the shift from federal to state venues, were a key piece of evidence the Delaware Supreme Court considered in its ruling.