Intuitive Surgical Directors Must Face Investor Claims

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By Michael Greene

Nov. 18 — Intuitive Surgical Inc. directors and officers must face investor claims that they breached their fiduciary duties by failing to comply with Food and Drug Administration regulations and not establishing sufficient internal controls, the U.S. District Court for the Northern District of California ruled Nov. 16. Applying Delaware law, Judge Edward J. Davila held that the lead plaintiff, Robert Berg, adequately alleged that a pre-suit demand on the board regarding alleged misconduct involving the company's only product—a robotic surgical system—would have been futile (In re Intuitive Surgical S'holder Derivative Litig., N.D. Cal., No. 5:14-cv-00515-EJD, 11/16/15).