Tag Archives: Demand futility

Delaware Chancery Court Ruling Could Allow a Second Chance on Demand Futility Rulings

If a “fast filer” plaintiff races to the courthouse in one jurisdiction to file a derivative suit without prior due diligence, should a dismissal of the  lawsuit for failure to plead demand futility preclude a separate derivative lawsuit brought be a different , more diligent plaintiff who files in a second forum? On the one … Continue Reading

FCPA Follow-On Civil Actions: Frequently Filed, Less Frequently Successful

There is no private right of action under the Foreign Corrupt Practices Act. However, a company’s announcement of an FCPA investigation or enforcement action frequently will draw a follow-on civil lawsuit in the form of a shareholders’ derivative lawsuit, in which a shareholder plaintiff alleges that the company’s board failed to prevent the company from … Continue Reading

Home Depot Data Breach Derivative Lawsuit Dismissed

For some time now, many commentators (including me) have been predicting that as a result of rising numbers of companies experiencing date breaches that there would be a resulting wave of D&O lawsuits. Indeed, there have been a small number of high profile data security-related D&O lawsuits filed. However, several of those cases – including, … Continue Reading

The Curse of Multi-Jurisdiction Litigation: A Problem for Everyone, Not Just Defendants

One of the more distinct litigation phenomena in recent years has been the rise of multi-jurisdiction litigation, particularly in connection with merger objection litigation. Corporate advocates and defense attorneys have decried this development, as it has forced companies facing litigation to have to fight a multi-front war and to incur increased defense expense. At its … Continue Reading

Delaware Supreme Court Blasts Chancery Court’s Controversial Refusal to Recognize California Court Judgment

One of the more vexing litigation problems to emerge recently has been the proliferation of multi-jurisdiction litigation, where corporate defendants are forced to litigate essentially the same claim in multiple courts at the same time. This problem is a particular issue in the context of M&A litigation, although not contained to those kinds of lawsuits. … Continue Reading
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