Dismissal Of Derivative Suit For Failure To Plead Demand Futility Affirmed

Mealey's (April 17, 2019, 2:09 PM EDT) -- DENVER — A federal court did not err in dismissing a shareholder derivative lawsuit brought on behalf of The Western Union Co. for failure to plead demand futility because lead plaintiffs failed to sufficiently show that a majority of Western Union’s board of directors faced a substantial risk of liability for disregarding the company’s failure to implement an effective anti-money-laundering-compliance program (AML-compliance program), a 10th Circuit U.S. Court of Appeals panel ruled April 16 (City of Cambridge Retirement System, et al. v. Hikmet Ersek, et al., No. 17-1381, 10th Cir., 2019 U.S. App. LEXIS 11077)....