Ex Parte Regions Financial Corporation, Morgan Asset Management, Inc., and James C. Kelsoe. (In Re Grantland Rice II…

Summary

The court held that the investors' claims were derivative because the alleged misrepresentations concealed injuries caused first to the investment funds and only secondarily to the investors. Because the investors did not satisfy the demand requirements for derivative actions, they lacked standing and the trial court was required to dismiss the action. Justice Murdock, dissenting, would have treated the claims as direct individual claims and characterized the defect, if any, as one involving the real party in interest rather than standing.