Opinion ID: 1541285
Heading Depth: 1
Heading Rank: 8

Heading: Disclosures Concerning the Board's Lack of Independence and Conflicts of Interest

Text: Plaintiff asserts that the complaint's vague allegations concerning director disinterest and independence were sufficient to withstand dismissal and that the trial court erred by finding to the contrary. The complaint simply stated that [t]he Proxy Statement failed to disclose all of the material facts concerning the Board's conflicts of interest and lack of independence. The trial court properly concluded, however, that this conclusory allegation had failed to state a cognizable claim. The conclusory allegations of non-disclosure fall precisely within the purview of Santa Fe. [42] Plaintiff's allegations need not be pleaded with particularity. Nevertheless, some factual basis must be provided from which the Court can infer materiality of an identified omitted fact. This is inherently a requirement for a disclosure claim.