Dismissals Loom Over Backdating Derivative Suits

Law360, New York (May 21, 2007, 12:00 AM EDT) -- With the all-too-palpable threat of dismissal looming in derivative shareholder complaints filed over the alleged backdating of stock options, plaintiffs attorneys are already strategizing for the next stage and preparing their amended complaints.

A number of options backdating derivative shareholder suits filed in 2005 and 2006 have been dismissed in recent months because, the judges have ruled, the plaintiffs failed to adequately show demand futility. As the plaintiffs in these cases regroup and prepare to refile amended complaints, other cases may face a similar fate....
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