Pfizer Inc.

Please read the following case and answer the questions:

Pfizer Inc. paid $2.3 billion to settle civil and criminal charges alleging that it had illegally marketed 13 of its most important drugs. This settlement made history, but not in a good way. It was both the largest criminal fine and the largest settlement of civil health care fraud charges ever paid. Shareholders filed a derivative suit against the Pfizer board and top executives. Defendants responded with a motion to dismiss on the grounds that shareholders had not made demand on the board.

Explain what is meant by making demand.

What choices does a board normally have when demand has been made?

Was demand necessary in this case? Please explain your answer.