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The Chancellor applied Arkansas preclusion principles and agreed that the Delaware plaintiffs' derivative claims were barred.
All debt and derivative claims are offset in global accounting consolidation, but capital is not.
Believing that these transactions were successful, Athilon filed a motion to dismiss Quadrant's derivative claims on the ground that it was now solvent.
"A.I.G. will move to dismiss the derivative claims asserted by Starr in A.I.G.'s name, consistent with the A.I.G. board of directors' previous decision.
"Nomura filed egregious derivative claims against the estate that grossly overstate actual damages," Daniel Ehrman, the Lehman estate's co-head of derivatives, said in a statement.
But the judge threw out so-called derivative claims in which Mr. Greenberg sought to fight on behalf of his former company.
Similar(34)
Her husband was awarded $1,500,000 on his derivative claim for the loss of his wife's services.
A creditor will retain standing for a derivative claim made while the corporation is insolvent, even if the corporation is ultimately able to repay its debt.
Simply naming directors as defendants and asserting they should have done a better job does not usually establish that they cannot make a decision on the validity of a derivative claim.
A series of previous decisions dismissed Quadrant's complaints as to Athilon's business strategy, but held that Quadrant had stated a derivative claim for breach of fiduciary duty arising out of Athilon's decision not to defer payments on debt held by EBF.
Second, as I wrote previously, there should be a national registry for every ownership claim, including every derivative claim, on a mortgage securitization.
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