Cardinal Health Suit Lacked Pre-Suit Demand, 6th Circ. Says

Law360, New York (August 15, 2013, 9:30 PM EDT) -- The Sixth Circuit on Wednesday declined to revive a shareholder derivative action alleging directors of Cardinal Health Inc. failed to ensure the pharmaceutical distributor complied with federal regulations, finding the plaintiff had not shown it would have been futile to make a pre-suit demand.

A three-member appellate panel said Henry Stanley's allegations of inaction by the board after a 2008 settlement between Cardinal and the U.S. Drug Enforcement Administration did not plausibly demonstrate a majority of the board acted “with reckless disregard for the best interests...
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