On April 10, 2003, the Court approved the settlement in the derivative class action and dismissed the derivative class action with prejudice. Previously, on March 28, 2002, the case was reopened according to a mandate from the USCA, remanding the District Court’s earlier judgment terminating the derivative class action.
On September 15, 1997, the defendants filed a motion to dismiss the complaint in its entirety. The District Court granted the motion to dismiss with respect to all class action claims and the section 36(b) claim, but denied it with respect to all remaining derivative claims.
The action arose out of Brazilian Equity Fund Inc.’s 1996 rights offering of its common stock. Both a derivative and class action law suit was filed against Brazilian Equity Fund (the “Fund”), Credit Suisse Asset Management, LLC (the “Adviser”), and certain officers and directors (the “Director Defendants”). In his derivative capacity, the plaintiff alleged that, in approving the Rights Offering, the Director Defendants put the interests of the Adviser ahead of the interests of the Fund's shareholders, thereby breaching their duties of loyalty and due care to the shareholders of the Fund. The class action claim included similar assertions but alleged that the Fund's shareholders were injured directly by the Director Defendants' breach of their fiduciary duties. Specifically, the complaint alleged violations of section 36(b) of the Act (derivatively against the Adviser), section 36(a) of the Act (against all defendants except the Fund), section 48 of the Act (against the Director Defendants and the Fund), section 36(a) of the Act (derivatively against all defendants except the Fund), and for breach of fiduciary duty at common law.105169