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 »
Shareholder Files Lawsuit Challenging UFC/WWE Merger
According to a report from Bloomberg Law News, a shareholder has filed a lawsuit challenging the proposed merger between Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). The lawsuit—filed by a pension fund—alleges that executives of the companies engaged in a “sham” bidding process. Within this blog post, our Miami shareholder litigation lawyer… Read More »
Target Seeks Dismissal of Shareholder Lawsuit from Federal Judge in Florida
According to a report from Reuters, Target is seeking the dismissal of a shareholder lawsuit from a federal judge in Florida. The company is facing legal action from a shareholder over the fall out of its Pride-Month marketing campaign. The retailer argues that the shareholder lawsuit is politically motivated and that no violation of… Read More »
What People Get Wrong About Shareholder Derivative Lawsuits
There are two different types of shareholder lawsuits: 1) Direct actions and 2) Derivative actions. A derivative action is a type of legal claim through which a shareholder (or group of shareholders) seeks to take legal action on behalf of the corporation itself. Shareholder derivative actions are notoriously complex. Below, our West Palm Beach… Read More »
Walgreens Will Pay Nearly $200 Million to Settle Rite-Aid Shareholder Litigation
According to a report from Business Insurance, Walgreens has agreed to settle a shareholder lawsuit for nearly $200 million. The class action shareholder lawsuit was initially filed against the company back in 2017 by a group of Rite Aid Corp shareholders who accused top corporate executives at Walgreens of making material misrepresentations about the… Read More »
Federal Judge Declines to Dismiss Shareholder Lawsuit Against General Electric (GE)
According to a report from Reuters, a federal judge in New York State will allow a shareholder lawsuit against General Electric (GE) to proceed. The multinational conglomerate is facing a lawsuit from shareholders that allege that the company’s leadership knowingly and improperly concealed certain financial risks from investors. Here, our Miami shareholder litigation attorney… Read More »
Federal Appellate Court Revives Privacy-Based Shareholder Lawsuit Against Meta
According to a report from Reuters, the Ninth Circuit Court of Appeals has revived a shareholder lawsuit filed against Meta. The tech giant that owns Facebook and Instagram is facing a complaint from shareholders for harm related to alleged data privacy violations. In this article, our Miami shareholder litigation attorney discusses the dispute in… Read More »
Amazon Shareholder Files Lawsuit Over Blue Origin Launch Contract
According to a report from Reuters, an Amazon shareholder has filed a lawsuit against the Board of Directors and its founder Jeff Bezos. The complaint—filed by the Cleveland Bakers and Teamsters Pension Fund—alleged that the company awarded a launch contract to Blue Origin (also owned by Mr. Bezos) without properly considering competing bids. Within… Read More »
Wells Fargo Prevails in Shareholder Lawsuit Over Alleged “Fake” Interviews
According to a report from Reuters, Wells Fargo—the American multinational financial services company based in San Francisco, California—has prevailed against a lawsuit filed by a group of shareholders. The claim had alleged that the company used “sham” interviews to boost certain diversity statistics. Within this article, our West Palm Beach shareholder litigation attorney explains… Read More »
JP Morgan, CEO Jamie Dimon Prevail in Shareholder Lawsuit Centered Around Alleged Ties to Disgraced Former Hedge Fund Manager Jeffrey Epstein
According to a report from Reuters, JP Morgan, its Chief Executive Officer (CEO) Jamie Dimon, and the company’s board of directors have prevailed in a shareholder derivative lawsuit centered around its alleged connections with former distracted hedge fund manager Jeffrey Epstein. A federal court dismissed the shareholder lawsuit on the grounds that shareholders failed… Read More »
Gap Prevails in Diversity-Related Shareholder Lawsuit—Significant Circuit Split Now Exists on Enforceability of Shareholder Derivative Forum Selection Clauses
According to a report from Reuters, Gap—the large San Francisco, CA based retail brand—has prevailed in a shareholder lawsuit over allegations that it breached its obligations to shareholders by making material misrepresentations about the level of racial diversity among members of its corporate leadership. Notably, the company won on a technical shareholder law matter…. Read More »
