Backdating Derivative Actions And Demand Futility

Law360, New York (May 10, 2007, 12:00 AM EDT) -- In the last month, two federal district courts in California have dismissed shareholder derivative complaints alleging backdating of stock options for failure to plead demand futility with the necessary particularity: In re CNET Networks Inc. Shareholder Derivative Litigation, 2007 WL 1089690 (N.D. Cal. April 11, 2007) and In re Computer Sciences Corporation (CSC) Derivative Litigation, No. CV 06-05288 MRP (Ex) (C.D. Cal. March 26, 2007).

Plaintiffs in both cases contended that it would have been futile to demand that the company’s board of directors pursue backdating...
To view the full article, register now.