If The Shoe Fits Defendants In Nine West D&O Litigation Fail To Convince Judge To Dismiss Claims For Breach Of Fiduciary Duty And Recovery Of Fraudulent Transfers - Insolvency/Bankruptcy/Re-structuring mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.
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A recent decision by Judge Jed Rakoff of the Southern District of New York highlights the risks faced by directors and officers of companies in financial distress who fail to undertake properly their duties to the company and its stakeholders. In mostly denying a motion to dismiss claims brought against former directors and officers of Nine West Holdings and Jones Group, its predecessor company, Judge Rakoff’s opinion highlights the limits of protective legal doctrines such as the business judgment rule, which typically shields from subsequent inquiry corporate decisions made in good faith and with appropriate care, and prophylactic measures such as the delivery of solvency opinions.