S&C Obtains Dismissal of Derivative Claims Against Grupo MéxicoOctober 15, 2020
Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery dismissed all claims against Grupo México S.A.B. de C.V. in a derivative action brought by a shareholder of Southern Copper Corporation. Grupo México is the largest mining corporation in Mexico and also operates transportation and infrastructure businesses. Southern Copper is one of the world's largest producers of copper and other minerals and is a majority-owned, indirect subsidiary of Grupo México.
The plaintiff claimed that Grupo México breached its fiduciary duties to Southern Copper when affiliates of Grupo México and Southern Copper entered into transactions that were not subject to prior review by an independent committee of Southern Copper's board. The plaintiff argued that Grupo México was subject to “conspiracy” jurisdiction in Delaware.
In its October 6 opinion, the court granted Grupo México's motion to dismiss, accepting its arguments that plaintiff's allegations fell short of the strict requirements of Delaware law for pleading conspiracy jurisdiction.
In 2017, in a separate Delaware derivative litigation, S&C achieved a favorable settlement of claims for Grupo México after being retained midway through the litigation.
The S&C team representing Grupo México was led by Robert Giuffra Jr. (who argued the motion), Sergio Galvis and David Rein.