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An Introduction to the Law of Corporations: Cases and Materials, Fall 2017

In re Oracle Corp. Derivative Litigation

Headnote

At the later stages of shareholder litigation, a board may use a special litigation committee to attempt to take control of litigation back from shareholders. However, at that time the burden of proof with respect to the independence of the board and its special committee have shifted. The special committee bears the burden of proving its independence. At this stage, facts that might not have been troublesome at the 23.1 stage take on a different light.