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'Caremark' Liability Following The SEC's New ESG Reporting Requirements

Members Douglas P. BaumsteinJacob H. Hupart, and Securities & Capital Markets Chair and Life Sciences Co-Chair Jonathan L. Kravetz, and Associates Will G. McKitterick and Ellen Shapiro authored an article for the New York Law Journal analyzing the role corporate boards play in monitoring and overseeing a company's operations, particularly in light of the SEC's imminent ESG disclosure rules. The article summarized, "Recent developments in the Court of Chancery concerning a corporate board’s duty to monitor and provide oversight over a corporation’s operations, so-called Caremark claims, are likely to intersect with the SEC's proposed new ESG disclosure obligations to create a new category of corporate risk."


New York Law Journal