Jefferies Financial Beats Derivative Suit on Corporate Jet Use

Jefferies Financial Group Inc.'s leadership is free of derivative allegations over executive travel on three corporate jets after a federal judge in New York determined the business judgment rule dooms the shareholder suit.

The shareholder sued the financial services holding company’s officers and directors over executives’ alleged “excessive personal use” of Jefferies’ corporate aircraft program, purportedly costing investors millions of dollars. The board’s post-investigation refusal to litigate as the shareholder requested was an exercise of its good faith business judgment, the U.S. District Court for the Southern District of New York said Tuesday.

Under New York law, the business judgment ...