Zimmer Holdings obtains dismissal of shareholder derivative action
Clients Zimmer Holdings, Inc.
Jones Day represented the directors of Zimmer, Inc. in a shareholder derivative action, securing dismissal based on absence of a pre-suit demand upon the board. The complaint sought to hold defendants personally liable for Zimmer's allegedly having provided illegal inducements to certain surgeons to use Zimmer products in violation of the anti-kickback provisions of the Medicare Fraud Statute. Jones Day moved on behalf of the director-defendants to dismiss the complaint for failure to make a pre-suit demand on the board of directors or to plead with particularity circumstances excusing demand. On August 28, 2008, an Indiana state court granted our motion to dismiss holding that plaintiff failed to plead specific facts establishing a substantial likelihood of personal liability on the part of the individual directors and, therefore, that the pre-suit demand requirement was not excused.
In re Zimmer, Inc. Derivative Litigation, No. 43D01-0710-CT-877 (Warsaw, Indiana)