What's interesting, and what the media generally hasn't reported (probably because the dollar amounts are low,) is that the board of directors is also under fire and every member of the board is named in the complaint.
"Demand Upon Defendant ___ Is Excused" refers to the rule that in a shareholder derivative lawsuit the plaintiff is generally required to make a formal demand on the board of directors to remedy the alleged wrongdoing before filing suit. But there is an exception called "demand futility." If the plaintiff can convincingly argue that the board members are too conflicted or otherwise unable to act impartially, the demand requirement is "excused." It doesn't mean that they're not pursuing damages from the board directly, even though the amounts involved are small.
> https://storage.courtlistener.com/recap/gov.uscourts.cand.44...
What's interesting, and what the media generally hasn't reported (probably because the dollar amounts are low,) is that the board of directors is also under fire and every member of the board is named in the complaint.
"Demand Upon Defendant ___ Is Excused" refers to the rule that in a shareholder derivative lawsuit the plaintiff is generally required to make a formal demand on the board of directors to remedy the alleged wrongdoing before filing suit. But there is an exception called "demand futility." If the plaintiff can convincingly argue that the board members are too conflicted or otherwise unable to act impartially, the demand requirement is "excused." It doesn't mean that they're not pursuing damages from the board directly, even though the amounts involved are small.