California State Teachers' Retirement System, New York City Employees' Retirement System, New York City Police…

Summary

The Supreme Court of Delaware affirmed dismissal of derivative claims because a prior federal judgment dismissing substantially identical claims for failure to plead demand futility precluded relitigation. The court held that successive derivative plaintiffs were in privity because they sought to enforce the corporation's rights, and that applying preclusion did not violate due process because the prior plaintiffs adequately represented aligned interests. The court declined to adopt a rule requiring a derivative action to survive a Rule 23.1 motion before its judgment could bind later derivative plaintiffs.