In re InfoUSA, Inc. Shareholders Litigation

Shareholders (plaintiffs) sued infoUSA's directors (defendants), alleging massive self-interested transactions benefiting CEO and largest shareholder V. Gupta — including company-paid private jets, a yacht, and a personal residence mischaracterized in SEC 10-K filings as "aircraft usage" — approved with knowledge of the misrepresentations by several directors who also received substantial personal benefits from the company, such as significant annual legal fees to one director's firm, a grant tied to another director's relationship with Gupta, and rent-free office space for two other directors' own businesses. The defendants moved to dismiss for failure to make a pre-suit demand on the board.