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Shareholders sought to appeal from a federal District Court settlement of a stockholder derivative suit. The suit arose out of claims that managers conspired with rival sellers thereby exposing the corporation to criminal and treble-damages liability. The Court of Appeals held that shareholders who had not intervened and were not parties to the derivate action could not appeal an unsatisfactory settlement. The court dismissed the appeal for want of jurisdiction.

Must shareholders formally intervene in a derivative lawsuit before they can appeal its settlement?

The Court did not answer the question. An equally divided Court affirmed the judgment of the Court of Appeals. Justice Sandra Day O'Connor took no part in the consideration or decision of this case.