One Step Forward, Two Steps Back

Law360, New York (May 18, 2011, 2:27 PM EDT) -- A shareholder's standing to sue on behalf of a corporation may have gotten easier, thanks to a decision in August 2010 by the Supreme Court of Delaware in which the court clarified shareholder standing requirements in "double-derivative" suits. But as demonstrated in a recent case from New York, avoiding dismissal in such actions may have gotten harder, especially when it comes to claiming demand futility.

Two shareholder "double derivative" actions against Bank of America and Merrill Lynch recently were dismissed by Judge Jed S. Rakoff of...
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