Skadden secured a favorable ruling for current and former PG&E directors and officers in shareholder derivative litigation arising from the September 2010 rupture of a natural gas transmission pipeline in San Bruno, California. In his January 30 decision, Judge Steven L. Dylina of the San Mateo Superior Court clarified a previously unsettled area of California and Delaware law regarding when to assess demand futility in light of successive amended complaints filed by different plaintiffs. The court held that, if the first plaintiff abandoned his action, then demand on the board of directors is evaluated as of when the second plaintiff files her complaint.
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates