Segal v. Powers

OPINION OF THE COURT

Edward H. Lehner, J.

Before me is a motion by defendants to dismiss, pursuant to CPLR 3211 (a) (3), a purported derivative action on behalf of the Downtown Athletic Club (the Club) on the grounds that (i) plaintiff David Segal does not have standing to commence this action, and (ii) the complaint does not allege an adequate demand upon the Board of Governors of the Club (the Board) to institute the action.

The Amended Complaint

The amended complaint asserts that the individual defendants, who are six former presidents of the Club, wasted millions of dollars of Club assets…