Where an investor brought derivative claims against fund fiduciaries for breach of fiduciary duty, negligence, waste and racketeering, claiming losses resulted when the fiduciaries knowingly caused the fund to invest in illegal off-shore Internet gambling websites, dismissal of the complaint for failure to state a claim is affirmed because the investor failed to make a pre-suit demand, and Maryland’s demand requirement would not frustrate the policies of the Racketeer Influenced and Corrupt Organizations Act, and participation by directors in alleged wrongdoing is not sufficient to excuse demand.
Judgment is affirmed.
Gomes v. American Century Companies, Inc. (MLW No. 64821/Case No. 12-1639 – 8 pages) (U.S. Court of Appeals, 8th Circuit, Colloton, J.) Appealed from U.S. District Court, Western District of Missouri, Wright, J. (Thomas Ignatius Sheridan III, New York, argued for appellant) (Steuart Hill Thomsen, Washington, D.C., argued for appellee; William Perry Brandt, Benjamin Kleine and Gordon C. Atkinson appeared on the brief).