Expertise

We specialize in rectifying shareholder injury by aggressively challenging the misconduct of directors and officers through high stakes litigation.

Representing shareholders of both public and private corporations, our goal is to defend shareholder value and improve corporate governance practices throughout the nation by successfully prosecuting shareholder claims.  We protect shareholders against wrongs such as:

Fraud
Breach of fiduciary duty
Corporate waste
Self-dealing
Insider trading
Unjust enrichment
Accounting impropriety
Misrepresentations in financial statements

Our experience spans jurisdictions across the nation and encompasses some of the largest and most noteworthy shareholder class action recoveries in history.  Our recent experience includes the following litigations:

Aldridge v. Blackmore, et al. (Delaware Court of Chancery) (C.A. No. 12196-CB)

Secured a $20 million cash recovery fund for TerraForm Global, Inc. and its stockholders.

In re ArthroCare Stockholder Litigation (Delaware Court of Chancery) (C.A. No. 9445-VCL)

Secured a $12 million cash settlement fund for the stockholder class.

Haverhill Retirement System v. Kerley, et al. (Delaware Court of Chancery) (C.A. No. 11149-VCL)

Secured a $10 million cash settlement fund for Providence Service Corp. and its stockholders.

Ann Arbor City Employees Retirement System v. Katzenberg (Delaware Court of Chancery) (C.A. No. 12507-CB)

Secured a $4.5 million cash fund for the stockholder class.

Recovery Action Against Leading Digital Asset/Cryptocurrency Exchange

FOT represented an investor in connection with a dispute involving a leading cryptocurrency exchange, which had appropriated a significant amount of the investor's digital currency. FOT secured a full recovery for its client.

In re VAALCO Energy, Inc. Consolidated Stockholder Litigation (Delaware Court of Chancery) (C.A. No. 11775-VCL)

Secured invalidation of unlawful charter and bylaw provisions that prohibited stockholders from removing directors with or without cause in violation of Section 141(k) of the Delaware General Corporation Law.

City of Riviera Beach General Employees Retirement System v. Aaron's Inc., et al. (Superior Court, Gwinnet County, Georgia)

Secured remediation of unlawfully composed classified board of directors.

Norfolk County Retirement System v. Sangwoo Ahn & Furmanite Corp., et al. (Delaware Court of Chancery) (C.A. 10727-VCG)

Secured elimination of improper "dead hand" poison pill.

City of Atlanta Firefighters' Pension Fund v. Creel, et al. (Delaware Court of Chancery) (C.A. No. 9924-CB)

Secured waiver of standstill provisions in non-disclosure agreements with potential acquirers that prevented potential acquirers from submitting competing bids for the company.

Miller v. Bolduc, et al. (Commonwealth of Massachusetts Superior Court) (C.A. No. 15-0807-BLS)

Compelled company to hold its first annual meeting in over five years, and put to a shareholder vote a compensation plan amendment that allowed for significant stock options to company insiders.

Morris v. Spectra Energy Partners (DE) GP, et al. (Delaware Court of Chancery) (C.A. No. 12110-VCG)

Class and derivative action alleging that in 2015, Spectra Energy Corp. ("SE Corp") improperly caused Spectra Energy Partners, LP to sell to SE Corp interests in two liquid natural gas pipeline companies for approximately $500 million less than SE Corp said they were worth. In a decision dated June 27, 2017, the Court denied in part Defendants' motion to dismiss. The case is now in the discovery phase.

Grace v. Apple (United States District Court for the Northern District of California) (5:17-cv-00551-LHK)

Class action alleging that in 2014, Apple, Inc. intentionally broke its FaceTime feature for millions of its users in order to boost its profits. On July 27, 2017, the Court denied the Defendants' motion to dismiss. This action is now in the discovery phase.

H&N Management Group, Inc. & Aff Cos Frozen Money Purchase Plan v. Couch, et al. (Delaware Court of Chancery) (C.A. No. 12847-VCMR)

Derivative action challenging, inter alia, the unfair extraction of over $100 million in annual management fees from real estate investment trust American Capital Agency Corp.'s ("AGNC") by a related-party private equity firm. On August 1, 2017, the Court denied the Defendants' motion to dismiss. This case is now in the discovery phase.

Lacey v. Larrea, et al. (Delaware Court of Chancery) (C.A. No. 11779-VCG)

Class and derivative action alleging Grupo Mexico's exploitation of Southern Copper, a company that it controls. The complaint alleges that Grupo Mexico caused Southern Copper to assume meaningful risk in connection with a massive construction project, the benefits of which Grupo Mexico usurped through an arrangement entered into in 2012 that will transfer hundreds of millions--or even billions--of dollars in revenue from Southern Copper to its controlling stockholder. This action is currently in the discovery phase.

Appel v. Berkman, et al. (Delaware Court of Chancery) (C.A. No. 12844-VCMR)

Stockholder class action alleging breaches of fiduciary duty by the Diamond Resorts International board of directors in connection with the 2016 sale of Diamond to private equity firm Apollo Global Management. In a decision dated February 20, 2018, the Delaware Supreme Court reversed the Court of Chancery's dismissal of the action, reinstating it for further proceedings below.

Cambridge Retirement System v. Decarlo, et al. (Delaware Court of Chancery) (C.A. No. 10879-CB)

Derivative action alleging a usurpation of corporate opportunity by the controlling stockholder group of AmTrust Financial Services, Inc. in connection with the 2014 acquisition of property and casualty insurer Tower Group International. On June 16, 2016, the Court of Chancery denied the motion to dismiss filed by the defense. This action is currently in the discovery phase.

Lenois v. Lawal, et al. (Delaware Court of Chancery) (C.A. No. 11963-VCMR)

Class and derivative action alleging an unlawful plan and scheme through which, in 2013, Erin Energy Corporation's ("Erin Energy") board of directors and the company's CEO and chairman agreed to purchase troubled Nigerian oil assets at an egregiously unfair price from a company controlled by Erin Energy's CEO and chairman. This action is currently on appeal before the Delaware Supreme Court.

Olenik v. Lodzinski, et al. (Delaware Court of Chancery) (C.A. No. 2017-0414-JRS)

Class and derivative action challenging merger of Earthstone Energy, Inc. and Bold Energy III LLC on basis that, inter alia, the merger would provide a bailout of EnCap Investments, L.P.'s struggling investment in Earthstone to the detriment of Earthstone and its minority stockholders. This action is in the motion to dismiss phase.

Greenway v. KCG Holdings, et al. (Delaware Court of Chancery) (C.A. No. 2017-0421-VCL)

Class action challenging proposed acquisition of KCG Holdings, Inc. by Virtu Financial, Inc. based upon, inter alia, violation of Section 203 of the Delaware General Corporations Law super-majority voting requirement. This action is approaching the motion to dismiss phase.

Schecter, et al. v. Calamos, et al. (Delaware Court of Chancery) (C.A. No. 2017-0356-JTL)

Class action challenging conflicted going private transaction involving Calamos Asset Management, Inc. This action is proceeding toward the motion to dismiss phase.

From e-discovery to social media, technological advancement has opened new avenues to investigate and prosecute corporate wrongdoing.  Leveraging our facility with cutting-edge technology, we place the corporate boardroom under the microscope and redress shareholder harm through litigation.