Kid Brands Secures Dismissal of Amended Derivative Complaint

Skadden secured the dismissal of an amended derivative complaint alleging Caremark claims against our client, Kid Brands, Inc. (as a nominal defendant), and its directors arising from customs fraud committed at a company subsidiary. On September 26, Judge Jose L. Linares of the U.S. District Court for the District of New Jersey dismissed with prejudice the amended derivative complaint, agreeing with our argument that the plaintiff failed to allege demand futility because a majority of the board was disinterested and did not face a substantial likelihood of liability. This is the firm's fourth victory for Kid Brands in connection with this matter.