9th Circ. Reinstates Finisar Derivative Case

Law360, New York (April 27, 2011, 9:17 PM EDT) -- The Ninth Circuit on Tuesday revived a derivative suit alleging optical networking provider Finisar Corp. and its board of directors improperly backdated stock option grants.

A three-judge panel reversed a lower court’s dismissal of the complaint brought by the City of Worcester Retirement System and three other Finisar shareholders for failing to allege particularized facts that make demand of the company’s board of directors futile.

“The district court here drew inference in favor of defendants rather than plaintiffs, resolved factual inconsistencies without discovery and analyzed plaintiffs’...
To view the full article, register now.