Preview:

ATTORNEYS FOR PLAINTIFFS ANTHONY REALE AND ROBERT WILKINSON Robert I. Harwood Samuel K. Rosen New York, New York Irwin B. Levin Richard E. Shevitz Arend J. Abel Scott D. Gilchrist Indianapolis, Indiana

ATTORNEYS FOR DEFENDANTS SPECIAL LITIGATION COMMITTEE OF THE BOARD OF DIRECTORS OF ITT CORPORATION Peter J. Rusthoven Matthew S. Winings Indianapolis, Indiana ATTORNEYS FOR AMICUS CURIAE INDIANA LEGAL FOUNDATION, INC. Jon B. Laramore Matthew T. Albaugh Indianapolis, Indiana

______________________________________________________________________________ Jun 28 2010, 1:43 pm

FILED
of the supreme court, court of appeals and tax court

In the

CLERK

Indiana Supreme Court
_________________________________ No. 94S00-0911-CQ-508 IN RE ITT DERIVATIVE LITIGATION, SYLVIA B. PIVEN, ET AL., Plaintiffs, v. ITT CORPORATION, ET AL., Defendants. _________________________________ Certified Question from the United States District Court, Southern District of New York, No. 07-CV-2878 (CS) The Honorable Cathy Seibel, Judge _________________________________

June 28, 2010 SHEPARD, Chief Justice.

In 1986, the Indiana General Assembly adopted a new framework for business corporations. Broadly put, this case turns on whether that framework largely relies on business judgments by corporate directors in deciding whether a company should pursue certain claims it might have, or instead looks favorably to derivative suits initiated by individual stockholders. We conclude that the statute`s text, its history, and our caselaw militate in favor of the former.

In particular, the U.S. District Court for the Southern District of New York has asked us about the standards to be applied under Indiana law for determining whether a shareholder can be excused from demanding that a corporate board act and whether a board deciding not to act stands in the way of the shareholder`s suit. Pursuant to Indiana Appellate Rule 64, Judge Cathy Seibel has certified the following question: What standard should be applied in determining whether a director is disinterested within the meaning of Indiana Code

Download Sylvia B. Pivens, et al. v. ITT Corporation, Inc..pdf

Indiana Law