This post was written by Herbert F. Kozlov and Lawrence J. Reina.
In a case of first impression in New York, the Appellate Division, First Department, has adopted the test the Supreme Court of Delaware developed in Tooley v. Donaldson, Lufkin & Jenrette, Inc., 845 A.2d 1031, 1039 (Del 2004) for determining the difference between a “derivative” claim and a “direct” claim in shareholder derivative lawsuits.
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