Paul, Weiss obtained a victory for Citigroup when Justice Fried
of the New York Supreme Court dismissed a derivative complaint
filed by a Citigroup shareholder. Plaintiff had demanded that
Citigroup sue certain current and former directors, officers and
employees for alleged breaches of their fiduciary duties with
respect to Citigroup's subprime-related exposures. Following a
lengthy investigation by a demand committee formed by the Board,
the demand committee recommended that the Board reject the
plaintiff's demand and the Board adopted the committee's
recommendation.
Plaintiff filed a complaint asserting claims for
breaches of fiduciary duty and waste arising out of the Board's
investigation of his demand. The court granted defendants' motion
to dismiss in its entirety, rejecting plaintiff's allegations
criticizing the reasonableness and good faith of the Board in
investigating plaintiff's demand and finding that plaintiff failed
adequately to plead demand futility with respect to his purported
waste claim. Finally, the court denied plaintiff's request for
leave to amend his complaint.
The Paul, Weiss team included litigation partners Susanna M.
Buergel, Charles E. Davidow, Brad S. Karp and
Richard A.
Rosen.