First American Beats Shareholders’ Derivative Suit

Law360, New York (August 16, 2011, 5:06 PM EDT) -- A California appeals court affirmed Monday a lower court’s decision to toss a shareholder derivative suit claiming top brass at units of insurer First American Co. promoted a “culture of wrongdoing,” saying the investors hadn’t specified any illegal transactions made by the executives.

The appeals court ruled that the Superior Court of Orange County properly sustained First American's demurrer without leave to amend because the shareholders had failed to highlight any wrongful transactions made by the directors and officers of First American Title Insurance Co. and...
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