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Case Citations [1] (July 2021 - April 2022)

handle is hein.ali/alicgv0097 and id is 1 raw text is: PRINCIPLES OF CORPORATE GOVERNANCE: ANALYSIS AND RECOMMENDATIONS PART VII. REMEDIES CHAPTER 1. THE DERIVATIVE ACTION § 7.01 Direct and Derivative Actions Distinguished W.D.Mich.2020. Com. (d) quot. in case quot. in sup. Shareholders of two government-sponsored enterprises that had been placed into conservatorships sued the United States Department of the Treasury, among others, seeking an order vacating and setting aside certain agreements defendants entered into with the conservators, which allegedly destroyed the value of their shares. While granting defendants' motions to dismiss based on plaintiffs' failure to state a claim, this court held that plaintiffs had prudential standing to sue even though their claims were derivative rather than direct. The court rejected plaintiffs' argument that they could bring direct claims under Principles of Corporate Governance § 7.01 given the equitable nature of the injunctive and declaratory relief they sought, reasoning that plaintiffs were essentially seeking monetary relief, because their claims were premised on the hope that invalidating the agreements would allow the enterprises to recoup their payments to the Treasury and thereby increase the value of plaintiffs' shares. Rop v. Federal Housing Finance Agency, 485 F.Supp.3d 900, 924. COPYRIGHT ©2022 By THE AMERICAN LAW INSTITUTE All rights reserved Printed in the United States of America For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination. ALI