Ark. Appeals Court Nixes Dillard's Investor Suit

Law360, New York (March 30, 2011, 6:22 PM EDT) -- An Arkansas appeals court dismissed a putative shareholder derivative class action Wednesday that claimed members of Dillard's Inc.'s board of directors had unjustly enriched themselves while the company's performance tumbled.

The Arkansas Court of Appeals affirmed a lower court's ruling that said Dillard's shareholder Billy Berry had failed to sufficiently show that he had made a presuit demand of the board of directors, or that such a demand would have been futile.

"For his complaint to withstand a motion to dismiss, Berry must show that a...
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