In re Par Pharmaceutical Inc. Derivative Litigation
United States District Court for the Southern District of New York
750 F. Supp. 641 (1990)

- Written by Sean Carroll, JD
Facts
Shareholders (plaintiffs) of Par Pharmaceutical Inc. (Par) (defendant) brought a shareholder derivative action against Par. Par’s board of directors appointed a special litigation committee (SLC) to investigate the claims. The SLC had the authority to make a recommendation to the board of directors on a course of action, subject to the board’s vote. The SLC recommended that the board pursue dismissal of the derivative action. The board voted and approved the recommendation. The shareholders argued that the board’s decision to seek dismissal was not entitled to deference under the business-judgment rule because four of the board members who voted to approve the SLC’s recommendation were defendants in the derivative action.
Rule of Law
Issue
Holding and Reasoning (Patterson, J.)
What to do next…
Here's why 832,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,400 briefs, keyed to 994 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.