Charles P. Liboff, Plaintiff-Appellant-Cross-Appellee v. Louis E. Wolfson, Defendants-Appellees-Cross-Appellants

The trial court dismissed plaintiff’s complaint in a derivative action on the ground that the complaint failed to com ply with Rule 23.1 of the Federal Rules of Procedure. This Rule requires:

“* * * The complaint shall also allege with particularity the efforts, if any, made by the plaintiff to obtain the action he desires from the directors or comparable authority and, if necessary, from the shareholders or members, and the reasons for his failure to obtain the action or for not making the effort.”

The complaint alleged as follows:

“Demand by plaintiff that the Board of Directors of the…