Panel: Derivative Suit Correctly Dismissed Based On Quorum Vote

Mealey's ( March 30, 2023, 10:13 AM EDT) -- HOUSTON — A federal district court properly dismissed a shareholder derivative lawsuit stating claims for breach of contract and breach of fiduciary duty against an investment adviser and five trustees of a business trust because the a quorum of the trustees had voted to reject the shareholder’s demand after a “reasonable and good faith investigation,” a Fifth Circuit U.S. Court of Appeals panel affirmed....