Client Alert

Chancellor McCormick has now said what all who represent bankruptcy fiduciaries know very well: when pursuing D&O claims, bankruptcy fiduciaries wield meaningful procedural and informational advantages over stockholder plaintiffs in derivative actions.

Her recent decision in Giuliano v. Grenfell-Gardner, No. 2025-0458-PAM, 2025 Del. Ch. LEXIS 224 (Del. Ch. Sept. 2, 2025), makes the point crisply. It was, she wrote, “no surprise” that most of the bankruptcy fiduciary’s claims survived dismissal given such advantages.

These advantages are not academic. They are powerful enough that our firm is willing to represent bankruptcy fiduciaries in large, complex cases on a contingency fee.

Our client alert—the first of a two-part series—highlights several of these procedural and informational advantages.

The second alert will address how bankruptcy fiduciaries can capitalize on such advantages by engaging special litigation counsel early.