News & Events

On September 15, 2011, the Arkansas Supreme Court issued a ruling affirming the dismissal with prejudice of all claims asserted in a putative shareholder derivative complaint on behalf of Dillard's Inc. against the twelve members of the Company's Board of Directors. The complaint in Berry v. Dillard, et al. purported to allege on behalf of the Company breach of fiduciary and four related claims against the Board concerning a number of transactions between the Company and affiliates of Board member Warren Stephens, the executive compensation paid to members of the Dillard family and other conduct of the Board. The Supreme Court affirmed an Arkansas Court of Appeals ruling that the complaint was properly dismissed for failure to make pre-suit demand on the Board or allege with particularity that a majority of the Board was unable to exercise disinterested and independent judgment with respect to a demand, and that leave to file any amendment was properly denied. The Firm previously obtained the dismissal of similar putative derivative claims asserted in Arkansas Federal District Court based on the preclusive effect of the State Court dismissal.

Simpson Thacher represented Dillard's and the Board of Directors in the action.

The STB team consists of Joseph M. McLaughlin, Sara Ricciardi, Andrew Cattell and Alex Simkin.