Question
1.Digital Software, Inc. (DSI) is a successful software company that develops and markets applications for smartphones. Allen, Roberta and Penelope are directors of DSI. At
1.Digital Software, Inc. (DSI) is a successful software company that develops and markets applications for smartphones. Allen, Roberta and Penelope are directors of DSI. At a board meeting, Allen, who's previous marketing strategies have all been successful, proposed a marketing strategy for DSI's newest product. He showed Roberta and Penelope a presentation with charts and other data demonstrating the likely success of the new strategy. Unknown to Roberta and Penelope, Allen had been running behind schedule for putting together the presentation and had made up some of the data he included. Roberta and Penelope approved the new marketing strategy, which DSI implemented. Unfortunately, implementing the strategy caused DSI's profits to drop drastically. Two of DSI's shareholders file a derivative lawsuit alleging the directors breached their fiduciary duties to DSI and asking the court to find Allen, Roberta and Penelope personally liable for DSI's losses.
a.As to Roberta and Penelope, judgment for whom?
b.As to Allen, judgment for whom?
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