We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Backdating Derivative Actions And Demand Futility

Law360 (May 10, 2007, 12:00 AM EDT) -- In the last month, two federal district courts in California have dismissed shareholder derivative complaints alleging backdating of stock options for failure to plead demand futility with the necessary particularity: In re CNET Networks Inc. Shareholder Derivative Litigation, 2007 WL 1089690 (N.D. Cal. April 11, 2007) and In re Computer Sciences Corporation (CSC) Derivative Litigation, No. CV 06-05288 MRP (Ex) (C.D. Cal. March 26, 2007).

Plaintiffs in both cases contended that it would have been futile to demand that the company’s board of directors pursue backdating...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.