Justices Scrap UBS Shareholder Suit Over Demand Futility

Law360, New York (August 27, 2013, 1:53 PM EDT) -- The U.S. Supreme Court on Monday dismissed UBS Financial Services Inc.'s appeal in a shareholder derivative suit accusing UBS of selling $757 million in bad bonds to Puerto Rico pension funds, a case that was set to clarify the standard of review for so-called demand futility arguments between shareholders and a board of directors.

The high court dismissed the case under Rule 46.

The high court granted certiorari to UBS in June, six months after the First Circuit revived the case on the basis that the...
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