A federal district court has dismissed a diversity application against The Gap Inc., citing the company's statutes, which designate the Delaware Court of Chancery as the exclusive forum for claims.
Plaintiff Noelle Lee is accused in the derivatives lawsuit filed in the U.S. District Court in San Francisco in September that the San Francisco-based clothing retailer has failed to create any "real racial or ethnic diversity" on the board or in its leading roles. despite her written proclamations to the contrary according to the complaint Noelle Lee v. Robert J. Fisher et al. Mr. Fisher is the company's chairman of the board.
The complaint accused the company of breach of administrative duty, aiding and abetting breach of administrative duty, abuse of control, unfair enrichment and breach of securities laws and regulations. by D&O Diary .
The Court held that the company's exclusive forum provision is valid. "The plaintiff does not point to any law or judicial decision that clearly states that enforcement of the forum selection clause would be contrary to a strong public order," the decision said, dismissing the case.
Plaintiff's Attorney Frank Bottini, Bottini & Bottini Inc in La Jolla, California, said in an email that he plans to appeal. Gap's lawyers did not respond to a request for comment.
Other companies have been prosecuted in similar diversity, including Facebook Inc. Another San Francisco judge dismissed the Facebook case, Natalie Ocegueda v. Mark Zuckerberg, et al. ., last month. The judge cited the company's forum choice in Delaware as one of her reasons for dismissing the case.
Under A.B. 979, which was signed into law by the government Gavin Newsom last year, listed companies in the state should have at least one minority director by 31