Firm defeats class action claim; plaintiffs must proceed individually

A derivative action was brought against the Firm’s corporate client and its directors. In the first phase of the litigation, the Firm’s litigators successfully stayed the derivative claims pending a resolution of the client’s defense that the plaintiff was not a shareholder, and thus not entitled to bring the action. Although the trial court later ruled that the plaintiff was a shareholder of the client, and could proceed with the derivative action, the Firm was able to secure a reversal of that decision at the appellate level. The appellate court dismissed the plaintiff’s claim of share ownership and related derivative claims.