# kaal:claim:5583610-034

**Claim.** Delaware fiduciary standards create litigation exposure for LER: if distributions are judged disproportionate under Unocal or Blasius, boards face court invalidation and roughly $1 to $3 million in cost per dispute.

**Type.** failure  **Support.** argued

**Holds when.**

- distribution deemed disproportionate
- Delaware enhanced scrutiny litigation

**Source quote.**

> Delaware fiduciary standards, including Unocal and Blasius, add litigation risks if distributions are deemed disproportionate, potentially leading to court invalidations and associated costs of $1–3 million per dispute.

**From.** Wulf A. Kaal, *Liquid Equity Rewards in Corporate America* (2025), 9.1. Costs and Risks, page 32

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

**Verify.** sha256 of source PDF `2d73609d95ddb1573acc2a9e7af617fbe6283d6e591deb6317f6d5d804517c62` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards%20in%20Corporate%20America.pdf

**Failure mode.** disproportionality invalidation  (family: compliance-cost-and-barrier-to-entry)

**Topics.** law-and-legal-systems, risk-and-incentives

**Keywords.** litigation-risk, unocal, blasius, invalidation, dispute-costs

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