What is the test for dismissing a derivative action for failing to comply with Rule 23.1?

MultiRegion, United States of America

The following excerpt is from La. Mun. Police Employees' Ret. Sys. v. Wynn, 829 F.3d 1048 (9th Cir. 2016):

2 We recognize that our decision in Potter v. Hughes , 546 F.3d 1051, 105455 (9th Cir. 2008), suggests that where shareholders have failed to comply with Rule 23.1, and their derivative suit is also plagued by an independent jurisdictional defect, we can choose either ground as a basis for dismissing their action. Because in this case we can cure any jurisdictional problems, however, we have no need to rely on Potter.

2 We recognize that our decision in Potter v. Hughes , 546 F.3d 1051, 105455 (9th Cir. 2008), suggests that where shareholders have failed to comply with Rule 23.1, and their derivative suit is also plagued by an independent jurisdictional defect, we can choose either ground as a basis for dismissing their action. Because in this case we can cure any jurisdictional problems, however, we have no need to rely on Potter.

Other Questions


What is the effect of a federal action for non-federal action in which a plaintiff is seeking to force a federal judge to dismiss the federal action? (MultiRegion, United States of America)
What is the legal test for dismissing an action for failing to comply with a previous order? (MultiRegion, United States of America)
What is the test for dismissing or dismissing a motion to dismiss or dismiss information from the US Department of Justice? (MultiRegion, United States of America)
Can a motion to dismiss an action be dismissed for failing to follow local rules? (MultiRegion, United States of America)
If a plaintiff fails to cure the defects mentioned in the action, will the action be dismissed? (MultiRegion, United States of America)
Can an action be dismissed for failing to comply with a court's order? (MultiRegion, United States of America)
Does a judgment of dismissal of a stockholder's derivative suit for failure to answer interrogatories bar a subsequent derivative suit based on the same cause of action? (MultiRegion, United States of America)
What is the test for dismissing an action for failing to comply with any order? (MultiRegion, United States of America)
Can a party be dismissed from an action if they fail to prosecute the action? (MultiRegion, United States of America)
When a federal court dismisses an action with prejudice, does the dismissal of the action by the federal district court result in a separate contract dispute arising from the settlement agreement? (MultiRegion, United States of America)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.