We would have preferred a ruling that challenges to shareholder proposals must originate with an SEC no-action request, but for the time being we will be satisfied with a dismissal based on mootness. Once the proposal has been withdrawn and the shareholder has promised not to re-submit, there is nothing for the court to consider….
Tag: litigation
Institutional Investor Class Action Plaintiffs Seek Governance Changes
Think of it like settling a lawsuit over a broken stair step that led to an accident by insisting, in addition to medical expenses, that the step be fixed and regularly monitored. These changes can include strengthening the board, especially the nominating, audit, and compensation committees, requiring shareholder votes on issues like golden parachutes and…
Pension Funds Sue FOX
New York City’s pension funds and the state of Oregon took legal action on Tuesday against Fox Corporation, alleging in a lawsuit that the Fox News parent company failed shareholders by allowing the right-wing channel to recklessly spread lies about the 2020 election that opened it up to a pair of historic defamation cases. The…
NYC Pension Fund Sued for Risk Assessment of Fossil Fuel Companies
Justice Antonin Scalia’s son, Eugene, who served as President Trump’s Secretary of Labor, is one of the lawyers from Gibson, Dunn, and Crutcher who have filed a lawsuit against the NY City pension fund on behalf of a fake front group called Americans for Fair Treatment (remember our rule that the more patriotic and bland…
Kellogg — Do Investors Want the Money from Unhealthy Foods?
Financial Times writes about a lawsuit by investors against Kellogg alleging investment risk from having such a high percentage of their revenue coming from foods deemed unhealthy. As governments and investors press food companies including Kellogg to make their products more nutritious, the US group has in turn taken legal action against the UK government…
Amicus Brief from Shareholder Commons in Challenge to the Shareholder Proposal Rule
The Shareholder Commons has filed an amicus brief in the challenge to the SEC’s rule restricting shareholder proposals. An excerpt: Plaintiffs are asking this Court to vacate and set aside the Amendments. Plaintiffs argue that the Commission failed to quantify the impact of the Amendments on the number of proposals that will be filed, otherwise…
CII Files Amicus Brief in Shareholder Proposal Rule Challenge
CII has filed a “friend of the court” brief in the challenge filed by Jim McRitchie and As You Sow to the SEC rule restricting shareholder proposals that was published in a flawed, rushed rulemaking in the last weeks of the Trump administration. Some highlights from the brief: In its haste to adopt these rule…
Agenda – ‘Board Publicly Lied’ — Case Against Directors Moves Forward
The Boeing board “publicly lied” about monitoring airplane safety following two deadly 737 Max crashes, according to court records. Directors also allegedly failed to assess airplane safety and fell short in demanding or expecting safety reports from management. Delaware Chancery Court Judge Morgan Zurn used these and other determinations to allow oversight claims against Boeing…
Exxon must face Massachusetts lawsuit alleging climate change deceit | Reuters
A Massachusetts state judge has rejected Exxon Mobil Corp’s (XOM.N) bid to dismiss a lawsuit by state Attorney General Maura Healey accusing the oil company of misleading consumers and investors about its role in climate change. In a decision released on Wednesday, Superior Court Justice Karen Green in Boston said Exxon failed to show that…
Federal Court Dismisses Derivative Complaint Seeking to Impose ESG Initiatives on a Public Company
In the past year, there has been a concerted effort by certain plaintiff firms to weaponize environmental, social, and governance (“ESG”) principles to attack corporate boards. On March 19, 2021, the United States District Court for the Northern District of California in Ocegueda v. Zuckerberg, Ca. No. 3:20-cv-04444-LB (N.D. Cal. Mar. 19, 2021), struck a blow against these efforts by…
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