Lakonia Management Ltd. v. Meriwether

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• concluding that shareholder lacked standing to assert derivative RICO claim in individual capacity, even though he could not bring the claim derivatively because he no longer owned shares in the company
• characterizing “direct/derivative dichotomy as an issue of proximate cause” in the civil RICO context
• stating “no unfairness” in dismissing suit for lack of standing when former shareholder had knowledge of allegedly objectionable conduct before sale of shares and had opportunity to bring derivative action but did not
• looking to offering memorandum, subscription agreement, and partnership agreement on motion to dismiss
• “A decrease in value of a holder’s shares which merely reflects the decrease in value of the firm as a result of the alleged illegal conduct is derivation rather than direct in nature and cannot confer individual standing under RICO.”
• finding “unjustified . . . and harmful” conduct not deceptive

Source: CourtListener parenthetical corpus (CC0).