FAGIN v. GILMARTIN

No. 04-3735.

432 F.3d 276 (2005)

Ellen FAGIN; Judith Fagin, derivatively and on behalf of Merck & Co., Inc., a New Jersey Corporation and Medco Health Solutions, Inc., a Delaware Corporation, Appellants v. Raymond V. GILMARTIN; Judith C. Lewent; William B. Harrison, Jr.; Heidi G. Miller; Thomas E. Shenk; Samuel O. Thier; Merck & Co., Inc.; Richard T. Clark; Joan A. Reed; Richard J. Rubino; Lawrence A. Bossidy; Jeanetta B. Cole; William N. Kelly; William G. Bowen; Niall Fitzgerald; Anne M. Tatlock; Edward M. Skolnick; Arthur Andersen, LLP Merck & Co., Inc., A New Jersey Corporation and Medco Health Solutions, Inc., a Delaware Corporation, Nominal Appellees.

United States Court of Appeals, Third Circuit.

Filed December 15, 2005.


Attorney(s) appearing for the Case

Jason S. Feinstein, Sterns & Weinroth, Trenton, NJ, Jeffrey S. Abraham, (Argued), Abraham, Fruchter & Twersky, New York, NY, for Appellants.

Daniel J. Kramer, (Argued), Paul, Weiss, Rifkind, Wharton & Garrison, New York, NY, Gregory B. Reilly, Deborah A. Silodor, Lowenstein Sandler Roseland, NJ, for Appellees.

Before ALITO, and AMBRO, Circuit Judges and RESTANI, Chief Judge.


AMBRO, Circuit Judge.

Plaintiffs in this derivative action allege that the officers and directors of Merck & Co., Inc. and Medco Health Solutions, Inc. violated their fiduciary duties to shareholders and failed to prevent harm to the corporations. Shareholders bringing, on behalf of their corporations, actions derived from alleged wrongs to those entities must make demand on the boards of directors unless to do so would...

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