Back to Basics: Board and Special Litigation Committee Investigations in Shareholder Derivative Litigation
Marc Casarino, Partner in the D&O Group, and Doug Greene, National Practice Leader of BakerHostetler’s Securities and Governance Litigation Team, co-authored “Back to Basics: Board and Special Litigation Committee Investigations in Shareholder Derivative Litigation,” published in the D&O Diary.
The authors explain and analyze the options available to corporate directors facing shareholder derivative litigation. After analyzing the “strategic drift” in derivative litigation defense in recent years, they remind practitioners about the nuts and bolts of board investigations and special litigation committees (SLCs), as well as when and how they should be utilized and conclude:
We hope the article helps achieve more efficient and thus more effective board investigations of shareholder demands and more use of SLCs. Delaware law gives directors the ability to control the corporation’s destiny – a unique feature of our litigation system – and corporations and their directors and officers will be better off if they maximize the value of these procedures.