Ind. Court Nixes Ex-Shareholders’ Claims V. Biomet

Law360, New York (February 18, 2009, 12:00 AM EST) -- An appeals court in Indiana has dismissed a derivative shareholder suit over allegations of options backdating against medical device maker Biomet Inc., saying that the plaintiffs had no standing to bring the suit after a private equity consortium’s acquisition of the company.

On Feb. 13, the Indiana Court of Appeals upheld a lower court’s ruling that shareholders lose their standing to bring derivative cases once they sell their shares in the company.

The lower court in Indiana had ruled that the new owners of Biomet assumed...
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