Texas Just Made Derivative Suits a Lot Harder for Shareholders

Texas Senate Bill 29 (SB29), signed into law on May 14 of this year, marks the Texas Legislature’s attempt to “seize this moment” to compete with other business-friendly states like Delaware and Nevada. Among its stated goals is to “shield directors from frivolous suits” and create “fair thresholds for shareholder actions,” according to an article written by Pillsbury Litigation counsel Ryan Sullivan in Austin.