Court dismisses shareholder derivative suit
on Aug 26, 2013 at 4:22 pm
The Court has dismissed one of the cases on its merits docket for the upcoming Term. Shortly before its summer recess, the Court granted certiorari in UBS Financial Services Inc. v. Unión de Empleados de Muelles de Puerto Rico to consider the standard of review that courts of appeals should use to review a federal district court’s determination that a complaint filed by a shareholder on behalf of a corporation does not allege facts that would excuse the shareholder from first asking the corporation’s board of directors to file the lawsuit itself. The case before the Court stemmed from a dispute regarding UBS’s role advising and administering investment funds in which the respondents, two Puerto Rican pension plans, owned shares. UBS’s opening brief on the merits was due to be filed on September 6, but the case has been dismissed pursuant to Supreme Court Rule 46, presumably with the agreement of both sides.
