León Cosgrove

Jury finds no damages in shareholder derivative action

By: León Cosgrove

On January 24, 2013, León Cosgrove secured a decisive jury verdict in favor of its client, a CEO of an investment company. According to the allegations of a putative minority shareholder, the CEO breached his fiduciary duties to the shareholders by causing the corporate entity to fund his lavish lifestyle and pay for his personal investments.

The plaintiff was seeking a put-back of over $9 million dollars. After 10 years of litigation and a multi-day jury trial, a verdict was returned in favor of the CEO, finding he owed zero dollars to the company – a complete victory in this shareholder derivative action. León Cosgrove attorneys Scott B. Cosgrove and Derek E. León represented the CEO in this trial.