9th U.S. Circuit Court of Appeals
Jun. 5, 2023
Gap shareholder suit belongs in Delaware, 9th Circuit says
The question is whether a Delaware corporation’s forum selection clause forecloses derivative complaints in federal court filed as violations of the Securities Exchange Act of 1934.
Creating a circuit split, a 9th U.S. Circuit Court of Appeals panel — sharply divided along partisan lines — has affirmed lower court decisions dismissing a shareholder’s lawsuit that Gap Inc.’s board of directors failed to consider diversity in nominating directors and hiring executives.
Instead, 9th Circuit Judge Sandra S. Ikuta — an appointee of President George W. Bush — wrote that the derivative complaint belonged in the Delaware Court...
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