Directors' and Officers' Liability: Shareholder Derivative Litigation Developments
In his column on Directors' and Officers' Liability published in the New York Law Journal, Joseph McLaughlin examines (i) two decisions underscoring that the pre-suit demand requirement is no idle ritual for the putative plaintiff; (ii) definitive guidance from the Delaware Supreme Court on the requirements for maintenance of a "double derivative" suit; and (iii) last month's Delaware Court of Chancery ruling that unlike in the corporate context—where creditors of an insolvent corporation may maintain derivative claims on behalf of the corporation—creditors of an insolvent Delaware limited liability company (LLC) lack standing to maintain derivative claims.