Delaware Supreme Court Chief Justice Collins J. Seitz Jr. asked a question the state’s courts have addressed but that remains ambiguous to those litigating deal cases: ”When do we cross the line from gross negligence and a screwed up business deal into actual bad faith by the board of directors?”

Seitz posed the question during the Wednesday argument to Saxena White director Tom Curry, who argued for a Block shareholder that the company’s acquisition of Jay-Z’s music streaming service Tidal was the rare type of bad faith deal that should pass the motion to dismiss stage in the Court of Chancery. Chancellor Kathaleen McCormick dismissed the suit in May, finding that an unconflicted board has the right to make a “terrible business decision” provided it does so in good faith.

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