United States First Circuit

In a shareholder derivative lawsuit alleging breach of fiduciary duties by officers and directors of a technology company related to mistakes in the company's financial statements, dismissal of the suit on grounds of issue preclusion is affirmed where plaintiffs in a state lawsuit were not grossly deficient in failing to include certain allegations in the state complaint, thus the federal plaintiffs were bound by the dismissal of the state litigation.

Appellate Information

• Decided 08/16/2007
• Published 08/16/2007

Judges

• JOHN R. GIBSON, Circuit Judge., Before TORRUELLA, Circuit Judge, JOHN R. GIBSON, Senior Circuit Judge  and LIPEZ, Circuit Judge.

Court

• United States First Circuit

Counsel

• For Appellant:
  
• Willem F. Jonckheer, with whom Robert C. Schubert, Juden Justice Reed, Schubert & Reed LLP, Douglas M. Brooks, John Martland, and Gilman and Pastor, LLP, were on brief for appellants.


• For Appellees:
  
• Daniel W. Halston, with whom Jeffrey B. Rudman, Peter A. Spaeth, Melissa B. Coffey, Wilmer Cutler Pickering Hale And Dorr LLP, Thomas J. Dougherty, Matthew J. Matule, Skadden, Arps, Slate, Meagher & Flom LLP, Robert S. Frank, Jr., John R. Baraniak, Jr., Choate Hall & Stewart LLP, and John D. Hughes, Edwards Angell Palmer & Dodge LLP, were on brief for appellees.