Nara Board Protected From $53M Shareholder Suit

Law360, New York (February 2, 2012, 1:33 PM EST) -- Nara Bancorp Inc.’s certificate of incorporation shields its directors from a $53 million shareholder derivative suit, a California state appeals court ruled Wednesday, in a decision the plaintiff’s attorney said would encourage corporations to establish strict legal protections to avoid liability under the business judgment rule.

A three-judge panel affirmed the dismissal of former Nara Chairman Thomas Chung’s lawsuit alleging 11 of the bank holding company’s current and former directors improperly restated its 2002 financial statements to account for an alleged $600,000 liability to its CEO....
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