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District Court Dismissed Derivative Suits Under Delaware Law
Posted In Derivative Claims
New Jersey Building laborers Pension Fund v. Ball, D. Del. No. 11-1153-LPS-SRF (March 13, 2014) and Freedman v Mulva, D.Del., No. 11-686-LPS-SRF (March12, 2014)
In these 2 decisions, the U.S. Magistrate shows a sound understanding of Delaware corporate law. She recommends the dismissal of these 2 derivative suits under Rule 23.1 because the complaints do not show the directors were disqualified from considering a demand they sue. The directors' interest in a compensation plan that was only currently applicable to employees did not make them interested under Delaware law.
Tags: Derivative Claims
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