This and the AIG decisions are the leading decisions on when the in pari delicto defense works. The Court carefully summarizes the 3 exceptions to when in pari delecto bars a recovery: (1) the adverse interest exception, (2) the fiduciary duty exception, and (3) the public policy exception such as in the case of the federal securities laws. Of these, the "greatest of all" is the fiduciary duty exception that even permits aiding and abetting clams to proceed.
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Court of Chancery Issues Mother of All in Pari Delicto Decisions
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