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Perspective

Nov. 8, 2014

Exclusive forum bylaws may have unintended consequences

Could the CEO of a California-based company be forced to file a wrongful termination action only in Delaware if his employer adopted an exclusive forum bylaw? By Scott M. Wornow


By Scott M. Wornow


Could the CEO of a California-based company be forced to file a wrongful termination action only in Delaware if his employer adopted an exclusive forum bylaw? Within the last year, significant numbers of U.S. publicly traded companies have adopted exclusive forum bylaws, seeking to limit lawsuits affecting their "internal affairs" and other matters to a single, designated state. In many instances, that state is Delaware.


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