Divided Missouri Appeals Court Reinstates Shareholder Derivative Suit Over Backdating

December 3, 2012, 5:00 AM UTC

A divided Missouri Court of Appeals Nov. 28 reinstated a shareholder derivative suit over alleged stock options backdating and related financial reporting flaws by officials of furniture component manufacturer Leggett & Platt (New England Carpenters Pension Fund v. Haffner).

Writing for the majority, Judge William Francis determined that plaintiff New England Carpenters Pension Fund’s petition “adequately pled the futility of pre-filing demand such that it had ‘standing under Rule 52.09 to bring and pursue the underlying case.’ ”

That Missouri rule governs the procedures for making a demand on a corporation and its shareholders prior to filing a shareholder ...

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