In re Fuqua Industries, Inc. Shareholder Litigation
Delaware Court of Chancery
752 A.2d 126 (Del. Ch. 1999)
Abrams (plaintiff), a 30-year Fuqua shareholder whose husband, a lawyer, jointly made their investment and litigation decisions and had unsuccessfully written to Fuqua's board about management concerns before the suit, suffered memory problems from illness and could not provide case details in her deposition beyond a general understanding of her claim; Freberg (plaintiff), owning 25 Fuqua shares, had minimal case knowledge but did demonstrate understanding of the basic nature of this and other derivative actions filed in his name, despite Fuqua's characterization of him as merely a lawyer's "puppet." Fuqua (defendant) moved to disqualify both as inadequate representative plaintiffs.
Whether a plaintiff who understands the basic nature of a shareholder derivative action brought in her name, but is unfamiliar with the facts and exercises little control over the case, is an adequate representative of the shareholder class.