Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!


More On

Ex-CEO claims California business judgment rule applies to corporate officers

Argues that common law component of California law should protect him

Former Indymac Bank CEO Michael Perry is asking the 9th Circuit to review the reach of California’s business judgment rule, which assumes that company directors’ actions are motivated by its best interests, and determine whether it also protects corporate officers from legal liability.

The lawsuit that the Federal Deposit Insurance Corporation brought against Perry claims that he acted negligently by overseeing the pooling of $10 billion into risky loans toward the end of the housing bubble, a move that lost Indymac more than $600 million.

A district court ruled on Feb. 21 that California’s business judgment rule does not shield Perry from liability. But in his appeal, which he filed on Friday, Perry argues that though the business judgment rule applies only to directors, the common law component of the rule could be interpreted to protect corporate officers. The filing claims that if the 9th Circuit finds otherwise, California would be the only state to interpret its business judgment rule that way.

Learn more about the case, and read Perry’s filing, in the Wall Street Journal.

Join the Conversation

Advertisement. Closing in 15 seconds.