A shareholder has won the right to bring a multimillion-dollar derivative action on behalf of the limited liability company that distributes Boar’s Head delicatessen products.

Southern District Judge Denny Chin, in Bischoff v. Boar’s Head Provisions Co. Inc., 06 Civ. 106, noted that New York federal courts have in the past permitted derivative suits on behalf of New York limited liability companies under common law, despite the absence of explicit statutory authority. As a result, he held that shareholder Eric Bischoff could sue the controlling members and managers of the Frank Brunckhorst Co., the distributor, for diverting millions in profits to Boar’s Head.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]