February 29, 2012 Articles

Revival of the Adverse Domination Doctrine

The death spiral of a corporation or a bank can be a long one, and if the directors work to prop up the institution, the discovery of misconduct may be delayed for years.

By Michael White and Nathan Viavant

The death spiral of a corporation or a bank can often be a long one. All the while, the directors and officers may be taking steps to prop up the failing institution. As a result, the discovery of misconduct may be delayed for years and, in many instances, may not occur until after the statute of limitations has expired. The current economic crises and resulting litigation aptly demonstrate the problems and solutions to pursuing claims against directors and officers in such circumstances.

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