Does the Business Judgment Rule Apply to Both Directors and Officers in California?
By Mark A. Gwin
Since 2008, more than 425 banks in the United States have failed. To date, the Federal Deposit Insurance Corporation (“FDIC”) has commenced twenty-seven (27) lawsuits against directors and officers of failed banks (and has authorized many more such suits), seeking to recover damages for the directors’ and officers’ alleged breaches of duty in managing the banks. Four such lawsuits have been filed in California.