Archives: Derivative Claims

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Judge Engelmayer Shoots Down a Starr

Starr International, a shareholder of AIG, is run by AIG’s former leader, Hank Greenberg. In Starr Intern’l v. Federal Reserve Bank of New York, Judge Engelmayer takes on Starr’s charge that the FRBNY ran roughshod over AIG’s shareholders when it bailed out AIG during the 2008 financial crisis. Judge Engelmayer describes Starr’s complaint as painting … Continue Reading

Judge Sweet On Bear Stearns’ Meltdown

Judge Sweet’s 400 page decision in In re Bear Stearns Companies, Inc. takes us through the collapse of Bear Stearns from three perspectives: a Securities Fraud Complaint against Bear and its accountants, a Derivative Complaint brought by former Bear shareholders who became shareholders of JP Morgan Chase when it acquired Bear in May 30, 2008, and an ERISA … Continue Reading

Judge Castel Prohibits a Plaintiff from Pursuing His Own and a Derivative Action

Judge Castel’s decision in Bahnmaier v. Bank of America, 10 Civ. 1234 (S.D.N.Y.) reaffirms the Southern District approach that a plaintiff cannot at the same time represent the shareholders of a corporation in a derivative suit against the corporation’s officer and directors, while at the same time pursing his own related individual lawsuit against the corporation.   Under Rule 23.1(a), a derivative plaintiff … Continue Reading