As I have mentioned on numerous occasions, California has its own insider trading statute - California Corporations Code Section 25402. The statute is included in the California Corporate Securities Law of 1968. In general, the jurisdiction of...
Judge Rules Internal Affairs Doctrine Governs California Insider Trading Statute
Posted on November 14, 2017
Nevada Supreme Court Adopts Delaware's Direct Harm Test For Derivative Claims
Posted on September 25, 2017
On the same day that the Nevada Supreme Court rejected Delaware's approach to reviewing special litigation committee determinations, it adopted Delaware's test for determining whether a shareholder suit is derivative or direct. Parametric Sound...
Court Of Appeal Holds LLC's Former Counsel May Represent Insider Defendants In Derivative Suit
Posted on August 02, 2017
Derivative actions can be somewhat confusing. Although the entity is essentially the plaintiff, it is named as a defendant. Initially, one might question why must the corporation be named as a party? I can think of at least two reasons. First,...
Federal Judge Rules Out Private Cause Of Action Under California Control Person Statute
Posted on May 12, 2017
Some persons may be deemed to violate the Corporate Securities Law of 1968 even though they did not directly violate the law. Corporations Code Section 25403(a) provides that a person who with knowledge directly or indirectly controls and induces...
