Current and former directors of The Goodyear Rubber & Tire Company obtain dismissal of shareholder derivative action

Client(s) Current and former directors and officers of Goodyear Tire & Rubber Company

Jones Day successfully defended current and former directors and officers of The Goodyear Rubber & Tire Company in a shareholder derivative lawsuit. The plaintiff asserted claims for breach of fiduciary duty in connection with an alleged product defect, related long-running product liability litigation, and a regulatory inquiry. The plaintiff asserted that its failure to make a pre-suit demand on the company's board of directors was excused and later moved to amend its complaint and sought discovery while the defendants' motion to dismiss was pending. Another shareholder sought to intervene and stay the derivative action in favor of a separate lawsuit seeking inspection of corporate documents. Jones Day moved to dismiss the complaint, sought a protective order against the plaintiff's discovery, and opposed the motions to amend and to intervene. The trial court granted the motion to dismiss, finding that demand was not futile, and denied the other motions as moot. An appeals court dismissed the plaintiff’s appeal, finding as a matter of first impression under Ohio law that the plaintiff’s sale of its shares while the case was pending in the trial court deprived it of standing.