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CALIFORNIA CORPORATE & SECURITIES LAW

Nevada Supreme Court Adopts Delaware’s Direct Harm Test For Derivative Claims

On the same day that the Nevada Supreme Court rejected Delaware’s approach to reviewing special litigation committee determinations, it adopted Delaware’s test for determining whether a shareholder suit is derivative or direct.  Parametric Sound Corp. v. Eighth Judicial District Court, 133 Nev. Adv. Op. 59 (2017).  When shareholders sue officers and directors, they may pursue direct…

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