Citigroup Directors Win Dismissal of Derivative Actions Linked to Enron, Dynegy, Adelphia
October 4, 2002
Cleary Gottlieb won in New York Supreme Court a motion to dismiss three shareholder derivative actions against certain present and former members of Citigroup Inc.’s board of directors. The lawsuits arose out of Citigroup’s transactions with Enron, Dynegy and Adelphia. Because Citigroup is based in Delaware, the Court ruled that New York was an inappropriate location for the litigation, which is governed by Delaware law. In fact, duplicate derivative actions are pending before the Delaware Chancery Court. The Court issued its decision today.