On September 6th, the Delaware Supreme Court addressed the effect of the derivative standing provisions of the Delaware Limited Liability Company ("LLC") Act. The plaintiff, who loaned a now insolvent LLC $40 million, claimed that the statute does not deprive creditors of standing to bring derivative actions on behalf of insolvent LLCs. The Court disagreed, finding that the plain language of the act limits derivative standing to members and assignees, and that limitation is constitutional. CML V, LLC v. Bax.