Plaintiff, an individual shareholder of the nominal insurance company defendant, appealed from a trial court order dismissing her second amended derivative complaint with prejudice. The appellate court affirmed finding the trial court did not err because plaintiff was required to plead, with particularity, what information the outside directors knew that contradicted statements contained in the company’s financial reports and that the second amended complaint failed to allege sufficient facts establishing that the outside directors faced a substantial likelihood of liability by knowingly disseminating false information. The court further found that the second amended complaint did not establish that plaintiff was excused from making a pre-suit demand to the board of directors. (DELORT and CONNORS, concurring)
Illinois Appellate Court
Civil Court
Corporations