Citigroup Shareholder Derivative Action Fails

Law360, New York (August 27, 2009, 6:06 PM EDT) -- Citigroup Inc. executives have won the dismissal of derivative litigation stemming from the collapse of the subprime mortgage market, a victory that comes after they challenged the shareholder plaintiffs' failure to demand action by the board of directors.

Tossing the consolidated complaint on Tuesday, Judge Sidney H. Stein of the U.S. District Court for the Southern District of New York said the shareholders had failed to persuade the court that they were excused from the presuit demand requirement under the Federal Rules of Civil Procedure....
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