Philadelphia partner Doug Raymond authored an article in the 2017 First Quarter issue of Directors & Boards titled, “Director Independence After Zynga.” Zynga is the second case in little over a year to expand the grounds upon which a director’s independence may be challenged. The cases seem to be moving from a focus primarily on economic relationships and conflicts to the much more ambiguous arena of social and friendship connections.
“Zynga signals the Supreme Court’s willingness to look beyond economic ties and power relationships and focus on personal relationships,” said Doug. After the decisions made in Sanchez and Zynga, it is not clear where the courts will go next.
Philadelphia associate Kyle Jaep assisted in the preparation of this column.