Derivative Suits and the Saudi Connection

Below is a post by a student, Frank Tsu, on the derivative suit filed on behalf of shareholders of BAE Systems, a case notable for the high profile defendant, Crown Prince Bandar Bin Sultan of Saudi Arabia.  Although described as an England and Wales corporation, BAE Systems trades in the US through ADRs, and the complaint notes that "approximately 50% of BAE;s shareholders reside in the U.S."  In other words, the case involves another example of the use of US courts to bring actions against the board of a foreign corporation.  Governance is only as good as the degree to which it can be enforced. 

But whatever you do, don't copy the complaint, at least without permission.  The notation on the front page provides:

• All rights reserved -- including the right to reproduce in whole or in part in any form.  Any reproduction in any form by anyone of the material contained herein without the permission of Patrick J. Coughlin and Coughlin Stoia Geller & Robbins LLP is prohibited.