Jewelry Co. Fuqi's Board Can't Shake Derivative Suit

Law360, Wilmington (April 26, 2013, 9:32 PM ET) -- A Delaware Chancery judge on Thursday refused to toss a shareholder derivative complaint aimed at directors of Fuqi International Inc., saying it pled sufficient facts about the China-based jewelry company's lack of internal controls.

Vice Chancellor Sam Glasscock III denied the board's motion to dismiss, finding shareholder George Rich laid out a plausible case that the directors failed to address Fuqi's significant accounting and reporting problems, which caused the company's shares to tumble from a high of $30 to their current value near $1.

Filed by...
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers

Required