On March 22, 2011, Judge Elaine Bucklo of the United States District Court for the Northern District of Illinois dismissed with prejudice an amended derivative complaint against Cravath client Huron Consulting Group Inc. and its directors.
Plaintiffs alleged that the directors breached their oversight fiduciary duties in light of Huron’s 2009 financial restatement and that the directors engaged in waste by causing Huron to pay incentive-based bonuses that were not justified by the restated financial results. Plaintiffs further alleged that they were excused from making a pre-suit demand on the Board because a majority of the directors purportedly lacked independence. Judge Bucklo held that plaintiffs failed to demonstrate that demand was excused, requiring dismissal of the complaint with prejudice. In August 2010, Judge Bucklo dismissed the prior complaint without prejudice on the same basis and for failing to state a claim.
The Cravath team included partners Richard W. Clary and Rachel G. Skaistis, senior attorney Lillian S. Grossbard and associates Radu A. Lelutiu, J. Wesley Earnhardt, Robert L. Boone, William B. Brady and Veena Viswanatha.