Cisco Asks Court to Toss Board Diversity Suit, Citing New Hires

Cisco Systems Inc. asked a court to dismiss a shareholder derivative suit alleging the networking giant misrepresented its commitment to diversity by failing to include a Black board member.

The September 2020 suit by the general employees pension fund for the City of Pontiac, Mich., was premature since Cisco’s board was already investigating its past diversity statements and practices in response to the plaintiff’s pre-suit demand, the company said in an April 30 motion in the U.S. District Court for the Northern District of California.

By filing a pre-suit demand, the plaintiffs admitted the board had the authority to evaluate ...