Shareholder Derivative Actions

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In an opinion Thursday, Judge Sweet rejected a proposed settlement of a shareholder derivative case because the consideration for the settlement consisted of three corporate governance reforms that were all but meaningless, such as a commitment to vague and unspecified “training” and a commitment to maintain the same ethics code that existed all along and that apparently didn’t help prevent the underlying wrongdoing:
Continue Reading Judge Sweet Rejects Shareholder Derivative Settlement With Hollow Governance Reforms

In a ruling yesterday, Judge Crotty dismissed a derivative action against fifteen JP Morgan Chase current and former executives and board members, including bank chief Jamie Dimon. The complaint alleged that that JP Morgan was damaged by six recent, high profile settlements with government agencies and private litigants that cost the firm billions. The…

In an opinion issued this morning, Judge Oetken denied a $6 million fee request from lawyers that voluntarily dismissed a suit charging Citi with awarding excessive compensation. The suit was filed after Citi’s shareholders, in a non-binding “say-on-pay” vote, rejected Citi’s proposed executive compensation plan for 2011. The lawyers argued that the suit caused certain Citi executives to resign and forfeit certain compensation (thus allegedly mooting the action to some extent), but Judge Oetken disagreed:
Continue Reading Judge Oetken Concludes That Dropped Suit Did Not Cause Pay Changes at Citibank, Denies $6 Million Fee Request