F5 Investors Can Sue Without Board OK: Wash. Court

Law360, New York (May 26, 2009, 12:00 AM EDT) -- The Washington Supreme Court has thrown its support behind investors suing 17 current and former F5 Networks Inc. officials over an alleged options backdating scheme, ruling that the shareholders did not need to seek the approval of the technology company's board of directors under state corporate law before filing their federal suit.

A unanimous opinion handed down Thursday by the state Supreme Court essentially implemented in Washington the same demand-futility standard for derivative litigation in place in Delaware and several other states and rejected the defendants'...
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