Delaware Supreme Court Holds Restrictive Covenants Still Enforceable After Stock Unit Consideration Forfeited

On February 3, 2026, the Delaware Supreme Court, sitting en banc, reversed a decision from the Delaware Court of Chancery that had dismissed claims for breach of restrictive covenants and breach of the implied covenant of good faith and fair dealing brought by a company against a former employee. N. Am. Fire Ultimate Holdings, LP v. Doorly, No. 142, 2025, 2026 WL 274647 (Del. Feb. 3, 2026). The Court ruled that consideration must be measured at the time a contract was formed, not at the time of... By: A&O Shearman