Case Study: Cal. State Teachers' Ret. Sys. v. Blankenship

A merger Is a major step in a corporation's life. To make sure that mergers are allowed only when in the best interest of the shareholders, the shareholders have different types of remedies if they believe that a merger is not in their best interests. One of these is bringing a shareholder derivative action. However, bringing this type of action is a complex business. Failing to carefully consider and craft the initial complaint can have devastating consequences to an action. In this case, a the people preparing the shareholder derivative lawsuit challenging a merger botched the initial complaint, and scrambled to try to save the action. In this case study, we watch the Supreme Court of West Virginia determine whether the lawsuit could be saved. This case is also a cautionary tale about preparing complicated lawsuits carefully.

The case can be found here:

https://caselaw.findlaw.com/wv-supreme-court-of-appeals/1896991.html