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Malone v. Brincat
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Appellants filed this individual class action alleging that Appellees breached their fiduciary duty of disclosure by intentionally overstating the financial condition of the corporation on repeated occasions to its shareholders. Appellants allege that as a direct result of these false disclosures, the company lost virtually all of its value of about $2 billion. The Court of Chancery dismissed the complaint with prejudice for failure to state a claim upon which relief may be granted.
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