Texas Supreme Court Reinforces Limits on Individual Shareholder Claims
November 18, 2025
The Texas Supreme Court issued a significant clarification on when shareholders may sue individually rather than derivatively for breach of fiduciary duty. In its opinion issued on November 14, 2025, in In re UMTH General Services, L.P., the Texas Supreme Court resoundingly rejected efforts by shareholders to transform fiduciary duties owed to the company into individual shareholder claims for breach of fiduciary duty. […]
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