2nd Circ. Affirms KO Of China North East Shareholder Suit

Law360, New York (August 23, 2013, 4:14 PM EDT) -- The federal rule to request amended judgments cannot be used against China North East Petroleum Holdings Ltd. to buy extra time to serve individual defendants in a shareholder derivative action, a Second Circuit panel ruled on Friday.

The lawsuit, brought in 2010 by shareholder Sherwin Drobner, accused the oil company’s leadership of making improper bank transfers between private and company accounts, among other breaches of fiduciary duty. The shareholders named eight China North officers and directors as individual defendants in their 2011 complaint, but they were...
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