On April 11, 2022, Justice Borrok of the New York County Commercial Division issued a decision in Alesco Preferred Funding VIII, Ltd. v. ACP RE, Ltd., 2022 NY Slip Op. 50258(U), holding that creditor could not assert a breach of fiduciary duty claim under Delaware law . . . Continue reading Creditors Do Not Have Standing to Bring a Breach of Fiduciary Claim Under Delaware Law
On March 9, 2022, Justice Borrok of the New York County Commercial Division issued a decision in Matter of Renren, Inc. Derivative Litig. v. XXX, 2022 NY Slip Op. 22069, holding that to have standing to bring a derivative action, plaintiff must be a shareholder when the company was injured . . . Continue reading To Have Standing to Bring Derivative Action, Plaintiff Must be Shareholder When Company was Injured
On February 3, 2022, the First Department issued a decision in Newman v. Newman, 2022 NY Slip Op. 00731, upholding both direct and derivative claims by a plaintiff where the claims sought relief for different injuries . . . Continue reading Court Upholds Both and Direct and Derivative Claims by a Plaintiff Because Claims Sought Relief for Different Injuries
On December 10, 2021, Justice Borrok of the New York County Commercial Division issued a decision in Matter of Renren Inc. Derivative Litig. v. XXX, 2021 NY Slip Op. 51176(U), rejecting a derivative action settlement that treated similarly-situated shareholders differently . . . Continue reading Court Rejects Derivative Action Settlement That Treats Similarly-Situated Shareholders Differently
On December 2, 2021, the First Department issued a decision in Glaubach v. Miller, 2021 NY Slip Op. 06758, holding that a board member lacked standing to assert a malpractice claim on behalf of the corporation even though he paid the corporation’s legal fees . . . Continue reading Director Lacks Standing to Assert Malpractice Claim on Behalf of Corporation
On October 26, 2021, the First Department issued a decision in Sajust, LLC v Mendelow, 2021 NY Slip Op. 05835, holding that an LLC member’s claim based on the decrease in the value of its capital account was derivative, not direct . . . Continue reading LLC Member’s Claim Based on Decrease in Value of its Capital Account is Derivative, Not Direct
