United States Supreme Court
396 U.S. 531 (1970)
Lehman Brothers stockholders (plaintiffs) brought suit against the directors of Lehman Brothers (defendants) on behalf of the corporation in a shareholders’ derivative suit. The defendants were accused of breaching their fiduciary duty to the corporation by improperly converting corporate assets to their own use, among other claims. The plaintiffs sought payments from the defendants to account for their profits and the company’s losses. The plaintiffs demanded a jury trial and the defendants moved to strike the demand. The district court denied the motion to strike. The court of appeals reversed, holding that a shareholders’ derivative suit was totally equitable in nature, so a jury was not available to the plaintiffs. The plaintiffs appealed.
Rule of Law
Holding and Reasoning (White, J.)
Dissent (Stewart, J.)
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