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Direct Claims Proceed Despite Business Judgment Rule Challenge; Derivative Claims Fail for Lack of Standing
The principal takeaway from Bent is that the business judgment rule will not shield board members from suit when a complaint contains nonconclusory allegations of bad faith, retaliation, or other tortious conduct, but derivative standing remains limited to those who hold a membership interest in the corporation and cannot be acquired merely through an assignment of litigation claims.

Jeffrey Haber
2 hours ago8 min read
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