The economic conditions of the past two years have caused many shareholders or members of corporations and other entities to review management’s actions in a critical light. These reviews, almost inevitably, will result in claims for mismanagement or malfeasance that will lead to litigation. Both the plaintiffs and the defendants in these matters should be aware of the preliminary requirements that Pennsylvania law imposes on claimants. These requirements include the making of a formal demand on the entity prior to litigation and obtaining court certification as an appropriate plaintiff after litigation is commenced. The courts that apply these rules have identified exceptions to these requirements. However, the courts have given little guidance on just how far they will apply these exceptions. If you anticipate either bringing or defending such claims, and want to discuss these requirements and their exceptions, please contact our office.
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