Attacking Venue In Shareholder Derivative Suits

Law360, New York (June 25, 2010, 9:52 AM EDT) -- Directors and officers sometimes face the daunting prospect of defending shareholder derivative lawsuits in distant venues away from the company’s home forum. Fortunately, several recent decisions may provide a strong basis for defendants seeking convenience-based transfers of derivative cases or dismissals of derivative suits for improper venue.

The Eastern District of Tennessee recently granted a defense motion to transfer a shareholder derivative action to the Northern District of Texas, where the corporation is headquartered, on Section 1404(a) convenience grounds. See Livermore v. Engles, case number 2:09-CV-70,...
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