Double Derivative Claims Fall Flat Post-Merger

Law360, New York (April 13, 2010, 1:22 PM EDT) -- Experienced corporate governance litigators have long known that if a Delaware corporation merges during the pendency of a derivative suit, the merger leads to a dismissal of that derivative suit. The reason is simple — standing to bring any derivative suit requires the named shareholder to possess and maintain “continuous ownership” of stock in the corporation on whose behalf he is suing.

This includes ownership at the time of the alleged wrong or transaction at issue, when the suit was commenced, and throughout the course of...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.