‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInElon Musk Is Out of Control: It’s the General Counsel’s Fault, Suit Alleges | Corporate Counsel
A newly unsealed lawsuit alleging that Tesla Inc.’s board of directors failed to appoint a general counsel who could stand up to controversial CEO Elon Musk highlights the limited options that company counsel have when dealing with difficult bosses. Tesla investor Chase Gharrity alleges, in a derivative suit filed in the Delaware Court of Chancery, […]
Judge Rejects Settlement Objectors’ Clever ‘Topping Bid’ Relying on Litigation Funder
Objectors’ use of a litigation financing group as part of their competing proposal does not meet with court’s approval.
Diamond Foods’ board sued over financial problems
Lawsuit claims board of Diamond Foods Inc failed to properly oversee the company.
Seventh Circuit Slams Plaintiffs’ Lawyers in Sears Lawsuit — WSJ
Court rules case “serves no goal other than to move money from the corporate treasury to the attorneys’ coffers.”
Lawsuit against Berkshire over Sokol affair dismissed
Berkshire Hathaway wins dismissal of shareholder lawsuit alleging former executive violated insider trading policy.
Judge Tosses BP Shareholders’ Claims Arising From Oil Spill
Court rules derivative action should be litigated in England.
Buffett and Sokol Sued Over Trading in Lubrizol Shares
Derivative lawsuit asks seeks disgorgement of Sokol’s trading profits in Lubrizol and damages.
Alabama Judge Grants Motion to Freeze Scrushy’s Assets
Yesterday, Jefferson County Circuit Judge Allwin E. Horn granted the HealthSouth shareholders’ motion filed Friday (discussed here) to freeze the assets of HealthSouth Corp. founder Richard Scrushy. On June 18, the shareholders won a nearly $2.9 billion judgment against Scrushy related to the accounting fraud at the company. The AP reports that the judge’s rulng […]
Step 1: Obtain $2.8 Billion Judgment; Step 2: Seek Asset Freeze
On Friday, attorneys for HealthSouth shareholders asked Alabama Circuit Judge Allwin E. Horn to freeze the assets of former HealthSouth CEO Richard Scrushy, against whom they obtained a massive nearly $2.9 billion judgment last week. One of the attorneys acknowledged that there was no expectation of getting the full judgment from Scrushy, but said that […]
$2,800,000,000 Judgment Against Richard Scrushy in Alabama Case
Alabama Circuit Judge Allwin E. Horn ruled today that former HealthSouth CEO Richard Scrushy must pay about $2.8 billion to shareholders who sued over accounting fraud at the company. Read that again: $2,800,000,000. The AP reports that: The Alabama suit accused Mr. Scrushy of unethical dealings while the company was going broke and complicity in […]