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KATZ v. RENYI

282 A.D.2d 262 (2001)

722 N.Y.S.2d 860

GILBERT KATZ et al., Respondents, v. THOMAS A. RENYI et al., Appellants. MURRAY ZUCKER et al., Respondents, v. J. CARTER BACOT et al., Appellants.

Appellate Division of the Supreme Court of the State of New York, First Department.

Decided April 10, 2001.

These consolidated derivative actions were brought on behalf of Bank of New York and its parent company, The Bank of New York Company, Inc. Plaintiffs allege that the bank's board of directors failed to prevent the bank from being used as a part of a money laundering operation. A similar Federal action was commenced in 1999. Approximately one year subsequent to commencement of the State derivative proceedings, the bank appointed a Special Litigation Committee (SLC) to investigate...

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