X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Mark D. Harris and Margaret A. Dale

The Delaware Supreme Court recently issued a significant decision on issue preclusion with regard to derivative actions. See California State Teachers’ Ret. Sys. v. Alvarez, 2018 WL 547768 (Del. Jan. 25, 2018). The court held that the dismissal of a shareholder derivative action for lack of demand futility can preclude later derivative actions, as long as the plaintiffs in the dismissed case adequately represented the corporation’s interests. The court rejected a standard proposed by the Delaware Court of Chancery, under which a judgment in one derivative action would bind later plaintiffs only if the first action survived a motion to dismiss for lack of demand futility, or if the board gave the plaintiff authority to proceed on behalf of the corporation. In recognition of the important issues involved, this column covered an earlier decision in this case; we now report on the final chapter. See Mark D. Harris & Margaret A. Dale, “Due Process Rights in Multi-Jurisdiction Shareholder Derivative Actions, N.Y.L.J. Feb. 15, 2017.

This premium content is locked for
New York Law Journal subscribers only.

  • Subscribe now to enjoy unlimited access to New York Law Journal content,
  • 5 free articles* across the ALM Network every 30 days,
  • Exclusive access to other free ALM publications
  • And exclusive discounts on ALM events and publications.

*May exclude premium content
Already have an account?
Interested in customizing your subscription with Law.com All Access?
Contact our Sales Professionals at 1-855-808-4530 or send an email to groupsales@alm.com to learn more.

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.