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LITIGATION ALERT: Pre-Suit Demand in Shareholder Derivative Suits Delineated

After decades of debate, the Texas Supreme Court has finally settled what exactly a shareholder is required to include in a pre-suit demand under the Texas Business Corporation Act (the "Act").  Despite the fact that pre-suit demand has been required of shareholders in one form or another since 1941, surprisingly few cases have examined precisely what is required to be included in such a demand.  The cases that have included any discussion at all have failed to provide more than just a cursory analysis.  Now, the Texas Supreme Court has finally addressed this issue in its recent decision in In re Schmitz.