New Derivative Action May Lead To Increased Claims Against Directors.Pendell, GuyDavies, Lindsey
However, the court’s decision highlights the difficulties faced by environmental activists in trying to dictate company policy via derivative claims. Those include the discretion that is afforded directors as to how a company is run, the lack of accepted guidance on how companies should tackle clim...
On June 1, 2023, the US Court of Appeals for the Ninth Circuit held in a split en banc decision that forum-selection clauses requiring shareholders to file derivative claims in the Delaware Court of Chancery are enforceable as applied to claims asserted derivatively under Section 14(a) of ...
On June 11, 2012, the Delaware Chancery Court ruled that a shareholder derivative case could proceed against the directors of Allergan, Inc., even after a federal court in California had dismissed with prejudice a parallel action based on identical claims.Louisiana Municipal Police Employees' Retirem...
defendants might be reluctant to settle with a hasty filer if the circumstances create questions about whether that filer adequately represented the corporation on the derivative claims. For all of these reasons, plaintiffs would be well advised to exercise appropriate diligence before filing der...
Legal Encyclopedia Stockholder Derivative Suit A lawsuit filed by one or moreshareholdersof apublicly-traded companyin the name of the company. Often, this lawsuit is filed against a member of the company's management who committed an illegal, unethical, or negligent act.Directors' and officers' ...
In July 2020, shareholders filed three separate but substantially similar derivative suits in U.S. district courts in California against certain directors and officers of three major technology companies, asserting claims related to alleged failures to uphold commitments to diversity.Specifically, plaintiff...
n. a lawsuit brought by a corporation shareholder against the directors, management and/or other shareholders of the corporation, for a failure by management. In effect, the suing shareholder claims to be acting on behalf of the corporation, because the directors and management are failing to exe...
However, situations can arise that leave directors and officers vulnerable—large exposures implicating numerous entities and individuals can quickly erode the policy’s available limits; or claims may not be asserted against individual insureds until long after claims against the company have ...
n. a lawsuit brought by a corporation shareholder against the directors, management and/or other shareholders of the corporation, for a failure by management. In effect, the suing shareholder claims to be acting on behalf of the corporation, because the directors and management are failing to exe...