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Bell Atlantic Corp. v. Bolger
United States Court of Appeals for the Third Circuit
2 F.3d 1304 (3d Cir. 1993)
Shareholders (plaintiffs) of Bell Atlantic Corp. (Bell Atlantic) (defendant) brought a derivative action against Bell Atlantic and its directors (defendants) seeking to recover amounts the corporation paid to consumers as part of a settlement with the Pennsylvania Attorney General (AG). The derivative suit stated that the AG settlement was the result of the individual defendants’ mismanagement of the corporation and, specifically, a breach of their duty of care. The derivative suit settled. Seymour Lazar, a Bell Atlantic shareholder, objected to the settlement on the grounds that Dechert, Price & Rhoads’s joint representation of Bell Atlantic and the individual defendants in the case was a conflict of interest. The district court held that the joint representation was appropriate and approved the settlement. Lazar appealed.
Rule of Law
Holding and Reasoning (Scirica, J.)
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