Gap Derivative Suit Over Diversity Efforts Goes to Full 9th Cir.

A Gap Inc. shareholder persuaded the full Ninth Circuit to consider reinstating her derivative suit over the company’s diversity efforts even though she filed it in a different court from the one specified in the bylaws.

A three-judge panel of the US Court of Appeals for the Ninth Circuit created a circuit split with the Seventh Circuit when it affirmed the trial court’s dismissal, stockholder Noelle Lee said in her argument for en banc review.

Chief Judge Mary H. Murguia’s brief order Monday accepted review and vacated the panel decision.

The complaint alleges board members made false statements to shareholders ...