Shareholders Failed To Plead Demand Futility Under Zuckerberg Standard

Mealey's (September 29, 2022, 11:35 AM EDT) -- NEWARK, N.J. — Dismissal of claims in a shareholder derivative lawsuit against several current and former executive officers and directors of a technology company, who are alleged to have breached their fiduciary duty by failing to disclose the company’s compliance issues regarding its anti-corruption policies, is necessary because the shareholders failed to sufficiently plead that pre-suit demand was futile under the standard set forth by the Delaware Supreme Court in United Food & Commercial Workers Union & Participating Food Industry Employees Tri-State Pension Fund v. Zuckerberg, a federal judge in New Jersey ruled....