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Casebook Read Credits
An Introduction to the Law of Corporations: Cases and Materials
Resource 3 . 1 . 4
less than a minute

DGCL Sec. 327 - Derivative actions

Brian JM Quinn

In order to have standing in derivative litigation, a stockholder must have already been a stockholder at the time of the bad act that gave rise to the litigation. This requirement prevents people from observing some bad act and then buying into a lawsuit. 

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