Court Adheres to Abuse of Discretion Review of Demand-Futility Dismissals in Shareholder Derivative Suits: Ninth Circuit | Practical Law
In Rosenbloom v. Pyott, the US Court of Appeals for the Ninth Circuit adhered to an abuse of discretion standard for reviewing demand-futility dismissals in shareholder derivative suits. The decision continues to make it more difficult for parties to appeal rulings dismissing shareholder derivative suits for demand futility in the Ninth Circuit, even as other courts have increasingly adopted de novo review of such dismissals.