LEE v. FISHER

No. 21-15923.

70 F.4th 1129 (2023)

Noelle LEE, derivatively on behalf of The Gap, Inc, Plaintiff-Appellant, v. Robert J. FISHER; Sonia Syngal; Arthur Peck; Amy Bohutinsky; Amy Miles; Isabella D. Goren; Bob L. Martin; Chris O'Neill; Elizabeth A. Smith; John J. Fisher; Jorge P. Montoya; Mayo A. Shattuck III; Tracy Gardner; William S. Fisher; Doris F. Fisher; The Gap, Inc., Nominal Defendant, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Filed June 1, 2023.


Attorney(s) appearing for the Case

Yury A. Kolesnikov (argued), Francis A. Bottini Jr. , and Albert Y. Chang , Bottini & Bottini Inc., La Jolla, California, for Plaintiff-Appellant.

Roman Martinez (argued), Susan E. Engel , Michael Clemente , and Jordan R. Goldberg , Latham & Watkins LLP, Washington, D.C.; Elizabeth L. Deeley and Morgan E. Whitworth , Latham & Watkins, San Francisco, California; William J. Trach , Latham & Watkins LLP, Boston, Massachusetts; for Defendants-Appellees.

Allison M. Zieve and Scott L. Nelson , Public Citizen Litigation Group, Washington, D.C., for Amici Curiae Public Citizen, Consumer Federation of America, and Better Markets.

Jeremy A. Lieberman and Emma Gilmore , Pomerantz LLP, New York, New York; Jennifer Pafiti , Pomerantz LLP, Los Angeles, California; Ernest A. Young , Apex, North Carolina; for Amici Curiae Law Professors.

Jeffrey R. White , American Association for Justice, Washington, D.C., for Amicus Curiae American Association for Justice.

Boris Feldman , Doru Gavril , Elise Lopez , and Sigourney Jellins , Freshfields Bruckhaus Deringer US LLP, Redwood City, California, for Amici Curiae Professors Joseph A. Grundfest and Mohsen Manesh.

Anitha Reddy , Wachtell Lipton Rosen & Katz, New York, New York; Tyler S. Badgley and Janet Galeria , United States Chamber Litigation Center, Washington, D.C.; Stephanie Martz , National Retail Federation, Washington, D.C.; for Amici Curiae The Chamber of Commerce of the United States of America and the National Retail Federation.

Dissent by Judge S.R. Thomas.


OPINION

Noelle Lee brought an action against The Gap, Inc. and its directors, "derivatively on behalf of Gap."1 Lee's action alleged that Gap violated § 14(a) of the Securities Exchange Act of 1934 (the Exchange Act) and Securities and Exchange Commission (SEC) Rule 14a-9 by making...

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