Point Blank gets OK to settle claims Jun 27, 2008
The derivative action settlement calls for the Pompano Beach-based armor maker to adopt certain corporate governance provisions and pay $300,000 in attorneys' fees and expenses to lead counsel in the action. "The court's ruling resolves another legacy issue and removes uncertainty surrounding our company and potential liability," Point Blank Solutions Chief Executive Officer Larry Ellis said in a news release. (South Florida Business Journal, FL)
U.S. judge rules Countrywide Financial officials must react to insider accusations May 15, 2008
The suit names 14 current and former directors and officials as defendants; it is known as a derivative action because shareholders of Countrywide are suing its officers and directors on behalf of the company. Lawyers representing the plaintiffs said that they would ask the judge to expedite discovery so that they can get testimony before the proposed purchase of Countrywide by Bank of America takes place. (International Herald Tribune -- Business)
Attention Applied Micro Circuits Corporation, Inc. Shareholders: Robbins Umeda & Fink, LLP Announces a Pending Shareholder Action Settlement May Impact Your Rights -- AMCC Mar 22, 2008
SAN DIEGO, March 21, 2008 (PRIME NEWSWIRE) -- The plaintiffs and defendants in a derivative action brought on behalf of Applied Micro Circuits Corporation, Inc. (``AMCC'' or the ``Company'') pending before the United States District Court for the Northern District of California (the ``Court'') have reached a tentative settlement ... The settling plaintiffs first filed the derivative action, purportedly for the benefit of AMCC, on July 11, 2006 ... Robbins Umeda & Fink, LLP, a San Diego,... (Primezone Releases)
Investment firm seeks to acquire Transmeta Feb 1, 2008
The investment firm--which is also attempting to acquire Zilog Inc.--filed a ''shareholder derivative action'' against Transmeta and its board, including John O' Hara Horsely, Richard Hugh Barnes, Lester M. Crudele, Robert V. Dickinson, Murray A. Goldman, William P. Tai, Thomas Peter Thomas, Rick Timmins and Sujan Jain. The complaint alleges breaches of fiduciary duty, gross mismanagement, waste of corporate assets and abuse of control arising from actions taken by the issuer's board and... (EETimes)
Plaintiffs Lawyers Split $9.5M Fee in Shareholder Suit Against Schering-Plough Jan 15, 2008
It has become much more common in recent years for derivative action settlements to provide for changes in corporate governance, he says. Incentives other than lawsuits are also at work, he notes. (Law.com)
Insurer's ex-CEO to forfeit $400m Dec 7, 2007
Mark Molumphy, lead counsel of a shareholder derivative action against Apple Inc., said: "The important fact is that the people who got the grants are now being forced to give that money back, which to date really hasn't been the case. "We think that is the way these cases should be resolved. Frankly, the Apple case should have been resolved months ago. (Boston Globe)
Gardy & Notis, LLP, Faruqi & Faruqi, LLP, and Head, Seifert & Vander Weide Announce Largest Settlement Ever in a Shareholders' Derivative Action: Former and Current Officers and/or Directors of UnitedHealth Group Inc. Have Agreed to Pay or Dec 7, 2007
Gardy & Notis, LLP, Faruqi & Faruqi, LLP, and Head, Seifert & Vander Weide Announce Largest Settlement Ever in a Shareholders' Derivative Action: Former and Current Officers and/or Directors of UnitedHealth Group Inc. Have Agreed to Pay or Relinquish Options and Other Benefits Totaling $922 Million to Settle Stock Options Backdating Claims -- UNH: Financial News - Yahoo ... Gardy & Notis, LLP, Faruqi & Faruqi, LLP, and Head, Seifert & Vander Weide Announce Largest Settlement Ever in a... (Primezone Releases)
Point Blank Solutions Reports 2007 Third Quarter Results Nov 10, 2007
4 million (resulting from the proposed settlement of the class action and shareholder derivative action) as compared to equity based compensation expense in the current year quarter of $1. 2 million, a difference of $7. (PR Newswire)
RIM Announces Definitive Settlement to End Derivative Litigation Oct 6, 2007
Under the settlement, each of the respondents to the application and each of the defendants in the proposed derivative action denied the allegations made against them by the Ironworkers. The Ironworkers also have acknowledged the extraordinary success and shareholder value achieved by RIM during the period covered by the allegations made by Ironworkers in its application, and that the additional corporate governance measures and the measures agreed to be adopted by RIM as announced by RIM on... (CCNMatthews Press Releases)
AIG shareholders sue PricewaterhouseCoopers Oct 2, 2007
The derivative action -- a claim brought by shareholders on behalf of a corporation -- was filed in Delaware Chancery Court on Friday. Top Money stories. (ABC News -- Wire)
State Bancorp is sued by its shareholders Jul 25, 2007
Filed by the Great Neck office of the law firm Wolf Popper Llc, the suit is a so-called derivative action in which shareholders claim a right to enforce a company's interests against directors and other insiders. No specific amount of damages is sought because plaintiffs don't know yet exactly how much was lost, according to Chet Waldman, the Wolf Popper attorney in the case. (Newsday -- Business)
Onus on auditors to blow whistle Jul 3, 2007
To further enhance the protection of minority shareholders, the amendments will also introduce the codification of the common law derivative action, which will help ease setbacks, such as cost of proceedings, that is currently being borne by the individual shareholders who initiated the action. Additionally, the changes also included the amendment to repeal section 132G. The prohibition under this section was seen as an impediment to genuine business transactions of a company. (The Star Online, Malaysia -- Business)
Robbins Umeda & Fink, LLP Today Announced That a Derivative Action Has Been Commenced in the Circuit Court of Cook County, Illinois On Behalf of Midway Games Inc. -- MWY Jun 9, 2007
Robbins Umeda & Fink, LLP Today Announced That a Derivative Action Has Been Commenced in the Circuit Court of Cook County, Illinois On Behalf of Midway Games Inc. -- MWY: Financial News - Yahoo ... Robbins Umeda & Fink, LLP Today Announced That a Derivative Action Has Been Commenced in the Circuit Court of Cook County, Illinois On Behalf of Midway Games Inc. -- MWYFriday June 8, 7:00 pm ET ... The plaintiff is represented by Robbins Umeda & Fink, LLP, which has extensive experience in pursuing... (Primezone Releases)
Report: Funds question Wilson Sonsini role in Brocade representation May 1, 2007
The firm also represents Brocade and Larry Sonsini in a securities fraud suit in federal court and another shareholder derivative action in Santa Clara County Superior Court. Related Industry stories. (San Jose Business Journal, CA)
Federal Judge Questions Wilson Sonsini's Role in Brocade Suit Apr 29, 2007
Wilson Sonsini also represents Brocade and Sonsini in two other civil cases, a securities fraud suit in federal court and another derivative action in Santa Clara County Superior Court. "As a global enterprise, Brocade employs several law firms to advise on many different regulatory, compliance and legal matters," said Brocade spokeswoman Leslie Davis. (Law.com)
Scrushy pays $81M to settle SEC fraud case Apr 24, 2007
"However, Richard Scrushy is still vigorously defending and denies similar claims brought in a class action by HealthSouth shareholders and bondholders and in a stockholder's derivative action. Now that there will not be a costly and distracting trial with the SEC, Richard Scrushy will focus his attention on clearing up other legal issues.". Scrushy was acquitted by a federal jury of 36 charges relating to the multi-billion dollar fraud case in 2005. (Birmingham Business Journal)
Ironworkers add names to RIM options lawsuit Mar 18, 2007
An Ontario pension fund seeking to sue Research In Motion Ltd.'s audit committee on behalf of the company in a so-called derivative action added RIM's co-chief executives and its former chief financial officer to the proposed action ... A derivative action is a lawsuit brought by a shareholder on behalf of the company to enforce a cause of action against a third party. (Toronto Star)
Oops! Orrick Associate Lets Slip Mercury Backdating Document Feb 21, 2007
The document -- a complaint in a shareholder derivative action against former executives of Mercury Interactive Corp. -- contains explosive allegations against the executives and quotes extensively from e-mails in which the executives allegedly discuss backdating their own stock options ... But a Dow Jones News Service reporter discovered Friday that Orrick associate M. Todd Scott had inadvertently filed the complaint publicly with a motion to stay the derivative action in October ... The... (Law.com)
Abercrombie & Fitch Directors Receive Report of Special Litigation Committee Feb 17, 2007
The special litigation committee has concluded that there is no evidence to support the asserted claims, has determined it would not be in the best interest of the Company to pursue those claims and has directed the Company to seek dismissal of the derivative actions. The Derivative Actions As previously disclosed, in September 2005, a derivative action, styled The Booth Family Trust v. Michael S. Jeffries, et al., was filed in the United States District Court for the Southern District of Ohio,... (PR Newswire)
RIM did backdate options, expert alleges Jan 26, 2007
The fund wants the court to approve a so-called "shareholder derivative action" that would involve RIM suing the directors on behalf of shareholders. The derivative action would seek $105-million in damages and allege that during their tenure on the board, "numerous stock options were manipulated.". (Globe and Mail -- Technology)
Sun-Times Receives $50 Million Shareholder Settlement Jan 25, 2007
CHICAGO, Jan. 24 /PRNewswire-FirstCall/ -- The Sun-Times Media Group, Inc. (NYSE: ) announced today it received the payment related to a settlement approved by the Delaware Court of Chancery of claims brought against certain of the Company's former independent directors in a derivative action filed by Cardinal Value Equity Partners ("Cardinal") in December 2003. Originally announced in May 2005, the settlement was funded by proceeds from certain of the Company's directors and officers insurance... (PR Newswire)
RIM Discloses Filing of Notice of Application to Commence Shareholder Derivative Lawsuit Jan 25, 2007
The Notice of Application, among other things, seeks the permission of the Court to commence a shareholder derivative action purportedly on behalf of the Company against certain of RIM's directors relating to RIM's historical option granting practices, and also makes certain demands with respect to the conduct and scope of RIM's ongoing management-initiated, voluntary review of such practices ... Additional lawsuits, including purported class actions and additional derivative actions, may be... (CCNMatthews Press Releases)
Taking Over a Business You Work For Jan 8, 2007
If you are shareholders and you can document that the company's lack of profitability stems from fraud or embezzlement, you could bring a derivative action against the majority shareholders. "Most states also allow minority shareholders to bring an action alleging minority-shareholder oppression," Herrmann notes. (BusinessWeek)
Apple 10-Q: thirteen new lawsuits, nine settled Jan 3, 2007
Bader v. Anderson, et al. (shareholder derivative action), Birdsong v. Apple Computer, Inc.; Patterson v. Apple Computer, Inc. (iPod earbuds cause hearing loss), Branning et al. v. Apple Computer, Inc. (Apple sold used computers as new and failed to honor warranties); European Commission Investigation (UK iTunes Music Store pricing); Honeywell International, Inc. et al. v. Apple Computer, Inc. et al. (LCD patent infringement); Lenzi v. Apple Canada, Inc.; Wolfe v. Apple Computer, Inc. and Apple... (Think Secret)
Six suitors looked at Symbol Nov 16, 2006
Also, a previous derivative action against Symbol was amended to include similar allegations, which Symbol said it believes are "without merit" and said it would "vigorously defend" itself against. Symbol chief financial officer and board member Timothy Yates entered a six-month retention agreement. (Newsday -- Business)
Judge orders review of Boeing suit Nov 14, 2006
Separately in 2003, three other Boeing stockholders had started proceedings in Delaware, seeking to inspect corporate records to determine whether a derivative action was warranted ... Instead, she addressed the issue in her August ruling: "Awareness of this indictment and the related guilty plea causes the court to believe that its responsibilities over this derivative action require it to make inquiry concerning the plaintiffs represented by Milberg Weiss.". (Chicago Tribune)
Court sides with Cray, throws out lawsuits Nov 4, 2006
"This dismissal, which was without prejudice, ends all of the litigation involving Cray and its current and former directors and officers that first began in May 2005 with the filing of securities class actions and derivative actions in the U.S. District Court for the Western District of the State of Washington," the press release says ... "A consolidated federal securities class action and consolidated federal derivative action in rulings in late April 2006, and entered judgment against the... (Chippewa Falls Chippewa Herald, WI)
Krispy Kreme Announces Settlement of Securities Class Action and Partial Settlement of Derivative Action Nov 1, 2006
WINSTON-SALEM, N.C., Oct. 31 /PRNewswire-FirstCall/ -- Krispy Kreme Doughnuts, Inc. (NYSE: ) announced today that the Company, acting with the approval of the Special Committee of its Board of Directors, has entered into a Stipulation and Settlement Agreement (the "Stipulation") with the lead plaintiffs in the pending securities class action, the plaintiffs in the pending derivative action and all defendants named in the class action and derivative action, except for the Company's former... (PR Newswire)
Stocks to Watch: McKesson and Baidu Nov 1, 2006
Separately, the company said it has reached a settlement of its securities class action and a partial settlement of its derivative action. The settlement class will receive a total consideration of about $75 million, the chain said. (Fox News)
Krispy Kreme posts wider 4th-qtr loss, settles suit Nov 1, 2006
The doughnut maker said its net loss for the fourth quarter of fiscal 2006 ended January 29 widened to $37. 7 million, or 61 cents per share, from $36. (ABC News -- Wire)
Central Freight Lines, Inc. Announces Amendment to Merger Agreement Eliminating Closing Conditions Sep 21, 2006
As previously announced, Central also has reached oral agreements in principle with the plaintiffs to settle pending securities class action litigation, two purported derivative actions related to the period between the date of Central's initial public offering and August 2004, and a third derivative action related to the merger transaction. These agreements in principle, if completed, would satisfy a condition to closing of the merger. (PR Newswire)
Congress summons HP execs for hearing Sep 17, 2006
" Analysts have said that the scandal has not had an impact on HP's operations or its stock price, which has remained steady for the past two weeks. HP shares were down 7 cents Friday to close at $36.18. The stock is up slightly from the day the scandal broke. Diamond said Lerach's action against HP is different from the type of lawsuits he has filed in the past, which were based on shareholders' losses due to a drop in a company's stock price. Lerach's lawsuit against HP, which is described as... (San Francisco Chronicle)
Central Freight Lines, Inc. Provides Update on Merger With Moyes-Owned Company and Announces Agreements in Principle to Settle Class Action and Derivative Litigation Aug 16, 2006
In addition, Central announced today that it has reached oral agreements in principle with the plaintiffs to settle all outstanding securities class action litigation, two purported derivative actions related to the period between the date of Central's initial public offering and August 2004, and a third derivative action related to the Merger transaction. The agreements do not contain any admission of fault or wrongdoing on the part of Central or any of the individual defendants in such... (PR Newswire)
Integrated Electrical Services Reports Financial Results and Announces Fresh Start Accounting Aug 10, 2006
" Integrated Electrical Services, Inc. is a national provider of electrical solutions to the commercial and industrial, residential and service markets. The company offers electrical system design and installation, contract maintenance and service to large and small customers, including general contractors, developers and corporations of all sizes. This press release includes certain statements that may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities... (PR Newswire)
TASER International Reaches Agreements to Settle Securities Class Action and Derivative Litigation Aug 10, 2006
As part of the settlement of the derivative action pending in the District Court of Arizona, the two other derivative actions and the Section 220 action will be dismissed as well. In conjunction with the agreements to settle, the Company will take a charge of approximately $18 million for litigation and related charges to the June 30, 2006 results. (Primezone Releases)
Former GC Among Comverse Executives Facing Backdating Charges Aug 10, 2006
A shareholder derivative action was filed in the Eastern District in April. The Department of Justice and the SEC are examining the actions of more than 80 companies suspected of being involved in questionable backdating practices. (Law.com)
Trio caught in stock-option probe Jul 27, 2006
The company disclosed that a shareholder derivative action was filed in the U.S. District Court for the Northern District of California, based here. This suit names Sigma as a nominal defendant and a number of Sigma's current and former directors and officers as defendants. (EETimes)
Is a Silicon Valley Indictment in the Works Over Stock Options Backdating? Jul 15, 2006
Over the last couple of weeks that case, a derivative action against the Brocade board, has come to a tentative resolution. In papers recently filed in San Francisco federal court, a group of plaintiffs lawyers and defense lawyers outlined a settlement that would get rid of a claim that Brocade board members -- including Sonsini -- breached their fiduciary duty by allowing Reyes to misreport options grants. (Law.com)
'X-Men III' fails to dodge the blotch Jun 13, 2006
Buffalo News - 'X-Men III' fails to dodge the blotch. Tuesday, June 13, 2006. (Buffalo News)
Business briefs Jun 9, 2006
The derivative action was an attempt to recoup for the company the money paid to Ovitz as he was pushed to leave after a stormy tenure at Disney. In a statement, Eisner attorney Gary Naftalis said Eisner was "very pleased" with the Delaware Supreme Court ruling. (Pensacola News Journal)
Merck Shareholders' Vioxx Suits Tossed due to Lapse in Protocol May 18, 2006
The plaintiffs had claimed that a prior demand would have been futile, but Chesler said the futility of making the demand "must be gauged at the time the derivative action is commenced, not afterward with the benefit of hindsight.". The suit, In re: Merck nc. (Law.com)
Integrated Electrical Services Reports Update on Reorganization and Fiscal 2006 Second Quarter Results May 11, 2006
This support has allowed us to maintain our backlog as we've gone through our reorganization," stated Byron Snyder. CONFERENCE CALL Integrated Electrical Services has scheduled a conference call for Monday, May 15, 2006 at 9:30 a.m. eastern time. C. Byron Snyder, Chairman and Chief Executive Officer, and David A. Miller, Chief Financial Officer, will conduct the call. To participate in the conference call, dial 303-262-2050 at least ten minutes before the call begins and ask for the Integrated... (PR Newswire)
Nicor Raises Earnings Estimate For 2006 May 3, 2006
The earnings for the same quarter 2005 were impacted by shareholder derivative action settlement costs of $3. 5 million and a directors and officers insurance recovery of $4. (CBS2Chicago.com, IL)
Ontario Class Action Suit Filed Against Royal Group and Notice of Possible Derivative Action Received Mar 31, 2006
The demand letter puts the Company on notice that if the Board of Directors does not comply with the request, a court application will be filed for leave to bring a derivative action in the name of, and on behalf of, the Company under the Canada Business Corporations Act. The Company's Audit Committee will review the request made in the demand letter and will make a recommendation to the Board of Directors. (PR Newswire)
Goodyear Securities Suit Dismissed in Federal Court Mar 23, 2006
Goodyear has also asked the Court to dismiss two companion cases pending before Judge Adams: a shareholder derivative action and an action based on alleged ERISA violations. Goodyear is the world's largest tire company. (PR Newswire)
16 Blocks gets lost among action cliches Mar 3, 2006
A few blocks short of being worth a trip to the theater, 16 Blocks is an uninspired and derivative action film borrowing heavily from far superior examples of the form. The title is a reference to the distance a washed-up New York City cop must travel to take a grand jury witness to court. (Boston Herald)
Sipex Announces Settlement of Shareholder Derivative Lawsuit Jan 24, 2006
Jan. 23 /PRNewswire-FirstCall/ -- Sipex Corporation (OTC: SIPX.PK) announced that the Superior Court of the State of California, County of Santa Clara, approved the settlement of a shareholder derivative action (entitled SIPEX DERIVATIVE CASES Included Actions: Nagdev v. Maghribi, et al. and Lie v. McBurnie, et al.) pending against certain of the Company's current and former directors and officers. The settlement involves the adoption of certain corporate governance measures and payment of... (PR Newswire)
Patrick hauls Toll into court Jan 17, 2006
Patrick launched the proceedings on behalf of PN as a so-called "derivative action" allowed to shareholders after the PN board last month rejected Patrick's proposal for PN to file proceedings against Toll over the contract. Toll and Patrick allegedly agreed that the "take or pay" contract, which dates from 2003, would underwrite PN's expansion in Queensland, by ensuring demand for the additional capacity PN was building in the state, while leaving 20 per cent of the rail capacity to service... (Australian)
