Jacobs Brass Beats Investors' Excessive Pay Suit

Law360, New York (March 8, 2012, 10:26 PM EST) -- A California state judge on Tuesday nixed a shareholder suit accusing directors and officers of Jacobs Engineering Group Inc. of excessive compensation, finding the shareholders failed to properly state a claim.

California Superior Court Judge Kenneth R. Freeman held that the shareholders failed to satisfy the demand futility requirement of shareholder derivative litigation.

In order to fulfill the requirement, the shareholders must allege beyond a reasonable doubt as to the disinterestedness of a majority of the 11 directors, the judge said.

“These allegations are rudimentary [and]...
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.