Category Archives: shareholder litigation
Under Armour Will Pay More than $400 Million to Resolve Shareholder Lawsuit Over Sales Disclosures
On June 22nd, 2024, CNN reported that Under Armour—the Baltimore, Maryland based sportswear company—has agreed to pay approximately $400 million to resolve a shareholder lawsuit over alleged improper sales-related disclosures. Here, our Miami shareholder litigation lawyer discusses the allegations, the legal issues, and the settlement agreement in more detail. Background: Shareholder Allege Under Armour… Read More »
Elon Musk Faces Another Shareholder Lawsuit; Sued By Tesla Shareholders Over Rival AI Company
According to a report from TechCrunch, Elon Musk is embroiled in yet another shareholder lawsuit. In this case, a group of Tesla shareholders alleged that Mr. Musk’s start-up artificial intelligence (AI) company X.AI Corp. (xAI) represents a conflict of interest. Specifically, he is accused of diverting resources from Tesla. Here, our Miami shareholder litigation… Read More »
Firefighter Pension Fund in Florida Reaches Multi-Million Dollar Shareholder Lawsuit Settlement With Investor Carl Icahn
In May of 2024, Bloomberg Law News reported that a firefighter pension fund in Florida has reached a multi-million dollar settlement of a shareholder lawsuit involving famed billionaire investor Carl Icahn. The settlement agreement brings an end to a multi-year shareholder derivative lawsuit involving the Xerox Corp. takeover of HP Inc. Here, our West… Read More »
Supreme Court Hears Oral Arguments in Complex Business Dispute Over Shareholder’s Life Insurance Policy
The Supreme Court of the United States recently heard oral arguments in a complex tax dispute over a shareholder’s life insurance policy. The case, Connelly v. Internal Revenue Service, centers around whether federal tax liability was properly assessed against a shareholder’s estate after a buyback. The decision of the court could have major implications… Read More »
The Three Most Common Grounds on Which a Shareholder Derivative Claim Can Be Dismissed
A shareholder derivative lawsuit is a legal claim filed by a shareholder or group of shareholders on behalf of the corporation itself. It is often but not always filed against the company’s officers, directors, or another key insider. When a shareholder derivative lawsuit is filed, corporate leaders typically move for an immediate dismissal. Here,… Read More »
Shareholder Lawsuit Allegations: Hedge Fund Improperly Benefited from Buybacks
As reported by Bloomberg Law News, a large hedge fund that benefited from an Avis stock buyback is being accused of obtaining improper advantages at the expense of other shareholders. The company is now facing shareholder litigation. Specifically, the plaintiffs contend that the hedge fund constructed a buyback scheme to get a controlling share… Read More »
Apple Settles Shareholder Lawsuit for Nearly $500 Million (CEO Comments)
On March 15th, 2024, Reuters reported that Apple has reached a nearly $500 million settlement agreement in a shareholder dispute. The dispute in question arose after CEO Tim Cook’s comments regarding the company’s relationship with China. Mr. Cook is accused of misrepresenting the company’s iPhone sales volume in the massive market. Here, our Miami… Read More »
Shareholder Conflict: Delaware Judge Voids Elon Musk’s Tesla Compensation Plan
On January 31st, 2024, the Associated Press (AP) reported that a Delaware judge voided the Tesla compensation plan for Tesla CEO Elon Musk on the grounds that it is “excessive” and there constitutes a breach of fiduciary duty by the company’s Board of Directors. For his part, Elon Musk has stated his intent to… Read More »
Miami-Dade County Judge Rules in Favor of Bank, Against former Officers/Directors
On January 3rd, 2024, the South Florida Business Journal ruled in favor of a financial institution in a shareholder dispute involving a conflict with its former officers and directors. Notably, the officers and directors in question were all shareholders in the company. U.S. Century Bank—the Miami-Dade County based community bank—prevailed in its motion to… Read More »
Shareholders Bring Massive Lawsuit Against NextEra Energy Inc. in Federal Court in Florida
According to a report, a group of shareholders have filed a massive lawsuit against a company called NextEra Energy Inc. in a federal court in Florida. With headquarters in Palm Beach County, NextEra Energy Inc. is one of the nation’s largest energy and infrastructure companies. It is being sued for losses of shareholder value… Read More »