Case Updates
Appeals Court affirms pleading standards for officers and directors
May 06, 2008
The appeals court disagreed with NCLC and found that the complaint seeking to hold an individual corporate officer liable for the allegedly fraudulent activity of a corporate employee satisfied the pleading requirements.
U.S. Chamber files amicus brief
February 01, 2008
NCLC filed a brief with the New York Court of Appeals as it considers the pleading requirements that govern the circumstances under which private plaintiffs may seek to hold an individual corporate officer or manager liable for allegedly fraudulent conduct committed by a corporate employee. In its brief, NCLC pointed to well-established precedent and argued that a claimant must allege and prove that the officer or manager was personally involved in the fraudulent act, or (at a minimum) actually knew of it and approved it, if the officer or manager is to be held personally liable for harm flowing from the employee’s allegedly wrongful act.