Corporate and Securities Litigation

Due Process Rights in Multi-Jurisdiction Shareholder Derivative Actions

, New York Law Journal


Corporate and Securities Litigation columnists Mark D. Harris and Margaret A. Dale write: In several recent cases, the Delaware Court of Chancery has addressed due process issues arising out of shareholder derivative actions. The Delaware Supreme Court has now taken up the baton in a case that raised the question of when a court in a subsequent action is obligated to honor an earlier dismissal of a shareholder derivative action for failure to plead demand futility.

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