Defendants Secure Dismissal of Shareholder Derivative Suit

For the defendants, Skadden secured the dismissal of a shareholder derivative suit brought on behalf of CytRx Corporation. On October 30, Judge George H. King of the U.S. District Court for the Central District of California dismissed the case on grounds of forum non conveniens based on CytRx's forum selection bylaw mandating that the litigation be brought in the Delaware Court of Chancery. The decision is the first within the Ninth Circuit to enforce a forum selection bylaw unilaterally adopted by a board of directors, following the reasoning in Boilermakers Local 154 Retirement Fund v. Chevron Corp.