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Yelp Derides Shareholder Derivative Suit, Defends Board Response

June 26, 2020, 6:50 PM

A Yelp Inc. shareholder who accused the company’s leadership of misleading investors about advertiser churn lacks standing to pursue his derivative suit, the company said in California federal district court.

The online review platform’s directors acted appropriately when the shareholder made his demand on the board, so he has no “standing to usurp the authority” of the company to decide whether to litigate, Yelp said in a motion to dismiss filed Thursday in the U.S. District Court for the Northern District of California.

Shareholders pursuing derivative suits have standing only when they can show that making a demand on a ...

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