Grosset v. Wenaas
California Supreme Court
175 P.3d 1184 (2008)
- Written by Daniel Clark, JD
Facts
Richard Grosset brought a shareholder derivative suit on behalf of JNI Corporation (JNI) against several of JNI’s officers and directors (defendants). After filing the lawsuit, Grosset sold his stock, and another JNI shareholder, Sik-Lin Huang (plaintiff), sought to intervene as a plaintiff. The trial court allowed Huang to intervene but dismissed the action on the merits. After the trial court’s ruling, JNI merged with a subsidiary of another corporation. Pursuant to the merger plan, the other corporation purchased all outstanding JNI stock, including Huang’s shares. After the merger, Huang filed to appeal the trial-court decision. The court of appeals dismissed the appeal, finding that Huang lacked standing to continue the litigation because he was no longer a JNI shareholder. Huang appealed to the California Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Baxter, J.)
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