Recent Trends In Shareholder Derivative Litigation

Law360, New York (January 19, 2010, 4:44 PM EST) -- Shareholder derivative litigation has changed dramatically over the past year, with the resolution of stock options backdating litigation and the emergence of subprime mortgage-related lawsuits. These two areas of securities litigation showcase a number of trends of which counsel should be cognizant as they face a changing economic landscape.

Increased Scrutiny of Special Litigation Committees

When faced with derivative litigation, corporate boards often convene a special litigation committee (“SLC”) of independent directors to consider a shareholder demand to sue or, in the case of already-pending litigation,...
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