Faulty Demand Letter Dooms Investor Suit V. Lancer

Law360, New York (May 26, 2009, 12:00 AM EDT) -- The Texas Supreme Court has ruled that a derivative shareholder suit against beverage dispenser maker Lancer Corp.'s former directors must be dismissed because the demand letter presented to the company's board didn't identify a specific shareholder and didn't make a demand with particularity.

The state Supreme Court on Friday unanimously found that a two-sentence letter sent by Coughlin Stoia Geller Rudman & Robbins LLP asking Lancer's directors to take action against Hoshizaki America Inc.'s buyout of the company for $22 per share did not meet the...
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