Brenner v. Albrecht, et al.Annotate this Case
In a shareholder derivative action brought in the name of Sunpower, plaintiff claimed that the directors and certain officers of SunPower breached their fiduciary duties by failing to implement or to monitor an effective internal control system, which caused the company to misstate, and then to restate, its financial statements for 2008 and 2009. That restatement also led to related actions in federal court accusing the company and its directors and senior management of violating federal securities laws (Securities Class Action). Plaintiffs sought indemnification for whatever losses the company ultimately incurred from the Securities Class Action and recovery of other damages directly caused by the restatement itself. Defendants moved to stay the derivative action pending resolution of the Securities Class Action. The court found that practical considerations made simultaneous prosecution of both cases unduly complicated, inefficient, and unnecessary. Therefore, the court granted defendant's motion to stay the derivative action.