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Marx v. Akers
Citation:666 N.E.2d 1034 (1996)
The complaint alleges that during a period of declining profitability at IBM the director defendants engaged in self-dealing by awarding excessive compensation to the 15 outside directors on the 18-member board. Plaintiff alleges that the director defendants violated their fiduciary duties to IBM by voting for unreasonably high compensation for IBM executives. Defendants moved to dismiss the complaint for failure to state a cause of action and failure to serve a demand on IBM’s board to initiate a lawsuit based on the complaint’s allegations.
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