Press Release – New York, NY – March 2, 2017 – Securities and Corporate Law firm Sichenzia Ross Ference Kesner LLP partner Sameer Rastogi and associate Mendy Piekarski authored an article published in Law360 entitled, “Removing Nevada Derivative Litigation To Federal Court.”
The article reviews the implications of a recent district court decision, Gartner v. Pyatt, for directors and officers of companies incorporated in Nevada who are defending against shareholder derivative lawsuits. Under the Gartner v. Pyatt decision—which SRFK attorneys successfully argued—shareholder derivative lawsuits against directors and officers of Nevada companies, which assert state-based claims like breach of fiduciary duty, will not categorically be restricted to Nevada state court under a jurisdictional rule called the “forum defendant rule.” Rather, in the appropriate circumstances, where the company management is not antagonistic to the lawsuit, the case should remain in federal court. The advantages of litigating in federal court can include greater procedural amenability to a stay of discovery pending motions to dismiss as well as federal judges who may have greater exposure to corporate governance matters.
Please view the PDF here: Removing Nevada Derivative Litigation To Federal Court
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