Judge Says Shareholders Failed To Show That Presuit Demand Was Futile

Judge Says Shareholders Failed To Show That Presuit Demand Was Futile

LOS ANGELES - Shareholders could not show that directors in a company showed bad faith regarding the company's violations of immigration laws, a federal judge in California said July 31, dismissing the shareholders' derivative lawsuit for failure to show that presuit demand upon the board would have been futile (In re American Apparel, Inc. Shareholder Derivative Litigation, No. 10-cv-06576, C.D. Calif.). View related prior history, 2012 U.S. Dist. LEXIS 47026

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