Ninth Circuit Affirms Dismissal of Derivative Complaint Against International Game Technology
On June 13, 2013, the Ninth Circuit affirmed the dismissal of a derivative complaint filed in Nevada federal court against International Game Technology (IGT) and various of its officers and directors in Sprando v. Hart, No. 11-17018 (9th Cir.). Wilson Sonsini Goodrich & Rosati represented IGT in the matter.
The appellate panel agreed with the district court that the plaintiff had not satisfied the pre-suit demand requirement applicable to derivative actions. Although the plaintiff sent a shareholder demand letter to IGT's board of directors in 2009, he filed suit before the board could conclude its investigation into his allegations of wrongdoing. The panel found that there was no merit to the plaintiff's claim that the IGT board had constructively refused his demand by taking several months to conduct its investigation. Therefore, the plaintiff had not fulfilled the demand requirement at the time he filed his complaint, and lacked standing to sue.
IGT was represented by Wilson Sonsini Goodrich & Rosati partners Boris Feldman, David Steuer, and Cynthia Dy; Counsel Diane Walters; and associate Jacob Veltman; as well as Richard Campbell of Armstrong Teasdale.
For more information, please see the Ninth Circuit's decision.