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Court Of Chancery Rejects Vague Demand Excusal Allegations

LVI Group Investment LLC v. NCM Group Holdings LLC, C.A. 12067-VCG (March 29, 2017)

This is an interesting decision because it applies the rules for determining when a derivative plaintiff, in the LLC context, has sufficiently alleged that pre-suit demand on the board would have been futile.  

Here, the plaintiff alleged some of the LLC directors worked for another LLC that was a member of the at-issue LLC, and that one of the individual defendants was an officer of that other LLC.  The Court found the allegations insufficient where they did not address the individual directors and how the relationships would compromise their ability to consider demand.

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