Yip v. Zia
In these consolidated appeals, Chi Lam, Erlinda Koo, and Wen T. Chiang (Objectors) appeal an order approving the dismissal of two related shareholder derivative actions after the trial court approved a settlement of both actions. Objectors contend the settlement unfairly allows the plaintiffs to gain majority control of both corporations and the court approved the settlement despite a conflict of interest between the plaintiffs and the corporations whose interests they purportedly represent. The defendants refute those contentions and contend Objectors have no standing to appeal and appealed from nonappealable orders. Court conclude that the order approving the dismissals is appealable, that Objectors have standing to appeal the order, and that the settlement approval was an abuse of discretion.
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