Kaplan v. Peat, Marwick, Mitchell & Co.

WALSH, Justice:

This is an appeal from a decision by the Court of Chancery dismissing a shareholders derivative action brought by plaintiffs, Bernard Kaplan, Martin Fox and Warren Opal (the “Plaintiffs”) on behalf of The Chase Manhattan Corporation (“Chase”) against Chase’s independent auditor Peat, Marwick, Mitchell & Co. (“Peat Marwick”). Plaintiffs allege that as a result of Peat Marwick’s negligence and breach of contract, Chase has suffered significant losses in two separate investment transactions. Peat Marwick moved to dismiss the action for failure to satisfy the demand requirements of…