Another Diversity Suit Stifled

Last week, yet another federal court dismissed a shareholder derivative suit that claimed a company had failed to diversify its corporate leadership team. Shareholders had alleged that Opko Health Inc., a Miami-based medical company, failed to nominate or appoint minorities to the board and executive management team despite public statements celebrating the company's diverse staff.

Unlike other recent diversity-focused suits subject to similar fates, this case was not dismissed on the basis of a forum selection clause in the company's charter or corporate bylaws. Instead, the court held that the plaintiffs had failed to show that any director faced a substantial likelihood of liability on their claims. The court's thorough analysis of these claims evinces a strong sense that, absent specific allegations regarding directors' actions or knowledge regarding their company's purported diversity failures, these types of claims may continue to succumb to motions to