Dismissals Throw Cold Water on Efforts to Make New York a Hub for Non-U.S. Derivative Litigation: New York Supreme Court Dismisses Two Derivative Suits Brought Against Directors and Officers of Bayer AG and UBS Group AG for Alleged Breaches of Fiduciary Duty, Finding That Those Actions Must Be Brought in the Companies’ Home Forums.Sullivan & Cromwell LLP - January 6, 2022
Last week, the Commercial Division of the New York Supreme Court dismissed two shareholder derivative actions brought against directors and officers of large European companies in decisions with critical implications for non-U.S. companies’ exposure to fiduciary litigation in the U.S. Those actions—against Bayer and UBS—are part of a flurry of derivative suits against major non-U.S. firms filed in New York state court over the past two years in an attempt to circumvent the requirements of these companies’ respective home forums. These two dismissals may spell the beginning of the end of those efforts. Sullivan & Cromwell represented UBS in obtaining the dismissal of the action against it.
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