Scott Crofton Talks to FT Agenda About Vaccination Mandates and Director Liability

November 12, 2021

Scott Crofton spoke to FT Agenda in a recent article about how mandatory vaccination policies may create new grounds for plaintiffs to claim that board members breached their oversight duties. The article notes that over the last several years, Delaware courts have seemed increasingly inclined to allow cases alleging board oversight failures to move forward, bogging board members down in so-called Caremark litigation. While some observers believe that vaccine mandates will create further grounds for such litigation, Scott told FT Agenda that he was skeptical, noting that the Caremark claims that have gained traction in Delaware courts tend to involve regulations pertaining to a specific entity, whereas a potential vaccination mandate would impact corporations generally. For Caremark claims based on vaccine mandates to be successful, Scott said, would require “Delaware courts to expand the application of Caremark beyond where it currently stands. And that would open the floodgates.”