CALIFORNIA PUB. EMPLOYEES' RETIREMENT SYS. v. FELZEN

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Case Basics
Docket No. 
97-1732
Petitioner 
California Pub. Employees' Retirement Sys.
Respondent 
Felzen
Advocates
(Argued the cause for the petitioners)
(Argued the cause for the respondents)
(For the United States, as amicus curiae)
Term:
Facts of the Case 

Shareholders sought to appeal from a federal District Court settlement of a stockholder derivative suit. The suit arose out of claims that managers conspired with rival sellers thereby exposing the corporation to criminal and treble-damages liability. The Court of Appeals held that shareholders who had not intervened and were not parties to the derivate action could not appeal an unsatisfactory settlement. The court dismissed the appeal for want of jurisdiction.

Question 

Must shareholders formally intervene in a derivative lawsuit before they can appeal its settlement?

Conclusion 
Decision: 4 votes for Felzen, 4 vote(s) against
Legal provision:

The Court did not answer the question. An equally divided Court affirmed the judgment of the Court of Appeals. Justice Sandra Day O'Connor took no part in the consideration or decision of this case.

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CALIFORNIA PUB. EMPLOYEES' RETIREMENT SYS. v. FELZEN. The Oyez Project at IIT Chicago-Kent College of Law. 13 December 2014. <http://www.oyez.org/cases/1990-1999/1998/1998_97_1732>.
CALIFORNIA PUB. EMPLOYEES' RETIREMENT SYS. v. FELZEN, The Oyez Project at IIT Chicago-Kent College of Law, http://www.oyez.org/cases/1990-1999/1998/1998_97_1732 (last visited December 13, 2014).
"CALIFORNIA PUB. EMPLOYEES' RETIREMENT SYS. v. FELZEN," The Oyez Project at IIT Chicago-Kent College of Law, accessed December 13, 2014, http://www.oyez.org/cases/1990-1999/1998/1998_97_1732.