Bloomberg Law
April 28, 2021, 3:18 PM

Gap Wins Dismissal of Diversity Lawsuit for Wrong Forum

Lydia Beyoud
Lydia Beyoud
Fintech & Regtech Reporter

Gap Inc. has fended off an investor lawsuit alleging the retailer breached its fiduciary duty by failing to have meaningful diversity on its board.

Magistrate Judge Sallie Kim of the U.S. District of Northern District Court of California on Tuesday granted the San Francisco-based company’s bid to dismiss the shareholder derivative suit on the grounds that it should have been brought in Delaware Chancery Court.

Plaintiff Noelle Lee alleged Gap failed to create the diversity it claimed among its board and senior executives, and made false statements about its diversity efforts.

Gap said its bylaws designate the Delaware court as ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.