Calif. Ruling Hands Shareholders Forum Selection Power

Law360, New York (March 22, 2011, 5:14 PM EDT) -- A California district court's recent ruling striking down the enforceability of Oracle Corp.'s board-approved forum selection clause in a pair of shareholder derivative suits has the potential to wrestle control of venue selection away from corporate directors and place it squarely in the hands of the company's shareholders, according to attorneys.

Ruling on a question of first impression, Judge Richard Seeborg of the U.S. District Court for the Northern District of California in January found that a bylaw unilaterally adopted by a company's directors was not...
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