Jerrell Whitten v. Ronald F. Clarke, et al., No. 20-14352 (11th Cir. 2022)

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Justia Opinion Summary

Plaintiff, a shareholder and citizen of Illinois, brought this shareholder derivative action alleging breach of fiduciary duties by FleetCor’s directors and executives without first making a demand on the board. Plaintiff argued that demand was excused because a majority of the board faced a substantial likelihood of liability for their breach of fiduciary duties. The district court held that Plaintiff had failed to adequately plead that demand was excused and dismissed Plaintiff’s claims.
 
The Eleventh Circuit affirmed the district court’s dismissal of Plaintiff’s complaint under Rule 23.1. The court held that Plaintiff failed to plead particularized facts showing demand was excused. The court explained that because Plaintiff failed to adequately plead Board knowledge of the allegedly fraudulent scheme, all three of his claims that purportedly show that a majority of the Board faced a substantial likelihood of liability fail.

Primary Holding
The Eleventh Circuit affirmed the district court’s ruling dismissing Plaintiff’s shareholder derivative action alleging breach of fiduciary duties by FleetCor’s directors and executives. The court held that Plaintiff failed to plead particularized facts showing demand was excused.

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