Andrews & Springer LLC filed a class action complaint on behalf of stockholders ofPaylocity Holding Corporation (“Paylocity” or the "Company") againstPaylocty’s board of directors (the “Board”) in the Delaware Court of Chancery, C.A. No. 12299-CB. Paylocity is a cloud-based provider of payroll, human capital management and software solutions for medium-sized businesses.
The complaint alleges that Paylocity's Board breached its fiduciary duties by unilaterally adopting a fee-shifting bylaw that allows Paylocity to shift legal fees to its stockholders in violation of Sections 109(b) and 102(b)(6) of the Delaware General Corporation Law ("DGCL"). The complaint seeks to invalidate the fee-shifting bylaw and seeks an Order from the Delaware Court of Chancery requiring the Board and the Company to rescind the fee-shifting bylaw.
Please click here for a copy of the Verified Class Action Complaint.