Gap Board Diversity Suit Dismissed Based On Forum-Selection Clause

Mealey's (April 29, 2021, 2:41 PM EDT) -- SAN FRANCISCO — A federal magistrate judge in California in an April 27 order ruled that dismissal of a shareholder derivative lawsuit against several current and former executive officers and directors of The Gap Inc. over the company’s lack of racial and ethnic diversity on its board of directors and senior management team is warranted because a forum-selection clause included in the apparel company’s bylaws requires that the plaintiff’s action be heard in the Delaware Court of Chancery....