Weil wins dismissal of #MeToo stockholder derivative action

On June 17, 2020, Weil secured a unanimous affirmance in the Ohio Court of Appeals of the trial court’s dismissal of a stockholder derivative action alleging breaches of fiduciary duties, mismanagement, abuse of control, and unjust enrichment by the board of directors and former officers of jewelry retailer Signet Jewelers Limited in connection with #MeToo movement allegations of sexual misconduct.

The Court of Appeals held that Bermuda law governed because Signet is a Bermuda corporation and that under Bermuda law stockholders lack standing to sue derivatively for alleged unlawful sexual misconduct without first alleging a fraud on the minority. The Court of Appeals also upheld the trial court’s denial of plaintiff’s request to file an amended complaint.

The Weil team was led by Securities Litigation practice Co-Head Joseph Allerhand and Securities Litigation partners Stephen Radin and Stacy Nettleton. The team also included associates Joshua Glasser and Ripley Shiarella.