Ultragenyx Secures Victory in Derivative Action

Skadden secured the dismissal for Ultragenyx Pharmaceutical Inc. and its board of directors of a derivative action in the Delaware Court of Chancery challenging the company’s nonemployee director compensation. On October 30, Vice Chancellor Kathaleen S. McCormick dismissed the suit. The decision represents a rejection of the plaintiff’s counsel’s use of a tactical “stock form” letter to pressure a board to settle nonemployee director compensation claims.