Overseas Law Preempts Shareholder Claims: Court

Law360, New York (May 27, 2009, 12:00 AM EDT) -- A California appeals court has put the kibosh on a shareholder derivative action against British Virgin Islands-based LJ International Inc., affirming the lower court's view that the plaintiff's right to sue the fine jewelry company hinges on overseas law rather than California statute.

On Tuesday, a three-judge panel in the Court of Appeal of the State of California, Second Appellate District, clarified the ambit of the internal affairs doctrine of the Corporate Code, holding that the law of the incorporating jurisdiction not California statute applies to...
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