Bell Nunnally Partner Benjamin L. Riemer authored the Dallas Bar Association (DBA) Headnotes article “Recent Developments in Texas Derivative Litigation.” The piece examines how recent statutory changes, court decisions and the establishment of the Texas Business Court are reshaping the ability of investors to pursue derivative claims on behalf of business entities.

Riemer discusses the implications of Texas Senate Bill 29, which allows certain corporations to establish a minimum stock ownership threshold of up to 3% for shareholders seeking to initiate derivative proceedings. He also examines three recent decisions addressing shareholder standing, fiduciary duties and the requirements for bringing derivative claims: In re UMTH General Services, L.P., Gusinsky v. Reynolds and Crain v. Northern.

Looking at the evolving legal landscape, Riemer notes that derivative claims are “one of the few procedures available to business litigators in Texas representing aggrieved investors.” He further explains that the applicable laws “are complex and vary widely depending on what type of entity is at issue.”

Riemer concludes that these developments “continue to shape when and how investors may pursue claims on behalf of an entity – and the strategic considerations attorneys should evaluate before bringing or defending a derivative action.”

To read the full article, please click here. (Page 20)