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Booth Family Trust v. Jeffries

640 F.3d 134 (2011)

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Booth Family Trust v. Jeffries

United States Court of Appeals for the Sixth Circuit
640 F.3d 134 (2011)

SC

Facts

Shareholders (plaintiffs) of Abercrombie & Fitch Company (Abercrombie) (defendant) filed a shareholder derivative suit against many of the corporation’s officers and directors (defendants). Abercrombie appointed a special litigation committee (SLC) to investigate the claims and to make a recommendation on how to respond to the lawsuit. Allan Tuttle was one of two initial members of the SLC. Tuttle was on the Abercrombie board of directors. Due to a prior relationship with Singer (defendant), Tuttle recused himself from any consideration of the claims against Singer. The SLC report found that there was no evidence to support the suit’s claims. Based on the SLC report, Abercrombie filed a motion to dismiss the shareholder suit. The district court found that the SLC was independent and granted Abercrombie’s motion. The plaintiffs appealed.

Rule of Law

Issue

Holding and Reasoning (Martin Jr., J.)

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