Wednesday, October 2, 2013

NC Decision on Direct versus Derivative Treatment of Claim that the Board Did Not Maximize Shareholder Value

      Mack Sperling at the North Carolina Business Litigation Report has reviewed a recent decision in which the shareholders sought to bring a claim that the board had not maximized shareholder value in a merger transaction.  The problem with that approach was that, as the Court found, that such a claim is derivative, and not direct, in nature.  Having not satisfied a requirement for bringing a derivative action, namely no demand upon the board, the suit was dismissed.

      Click here Don't Sue A North Carolina Board Of Directors Over A Merger Without Reading This Case to access his posting.

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