Document Type
Case Summary
Publication Date
9-14-2017
Case Synopsis
The Court clarified its holding in Cohen v. Mirage Resorts, Inc. by adopting the Delaware direct harm test to determine whether a shareholder’s claim is direct or derivative. Under the direct harm test, the Court asks (1) who suffered alleged harm, and (2) who would receive benefit from recovery or another remedy? If the shareholder cannot establish a claim without showing injury to the corporation, the shareholder’s claim fails.
Recommended Citation
Crow, Lucy, "Parametric Sound Corp. v. Dist. Ct., 133 Nev. Adv. Op. 59 (Sep. 14, 2017)" (2017). Nevada Supreme Court Summaries. 1080.
https://scholars.law.unlv.edu/nvscs/1080