Tag Archives: Plaintiffs

A Case Study on The Boeing Company Derivative Class Action

In 2006, plaintiffs in a derivative class action against the directors of The Boeing Company (“Boeing”), led by their counsel Labaton Sucharow, achieved a landmark settlement establishing unique and far-reaching corporate governance standards relating to ethics compliance, provisions that will also obligate Boeing to contribute significant funds over and above base compliance spending to implement the various prescribed initiatives.

In particular, Boeing’s Board of Directors will expressly undertake, through amendment of Boeing’s Corporate Governance Principles, reasonable oversight and monitoring responsibility for the implementation of Boeing’s ethics and compliance program and the effectiveness of those processes on an annual basis. The Audit Committee Charter also will be amended, including to provide for the Audit Committee to undertake responsibility for reporting no less than annually to the Board with respect to the implementation and effectiveness of Boeing’s ethics and compliance program. Click here to read more…

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Emerson Radio Case Study

In this memorandum opinion, the Court of Chancery reviewed the relevant factors Delaware courts should consider in determining the proper amount of a fee award, and then concluded that plaintiffs’ counsel in this matter was entitled to an award of $875,000 for the monetary and therapeutic benefits obtained through a previously negotiated settlement between the parties.

The litigation in this matter centered around certain related-party transactions that nominal defendant Emerson Radio Corporation (“Emerson”) allegedly engaged in at the behest of its controlling shareholder, The Grande Holdings Limited (“Grande”). Emerson’s Audit Committee began receiving reports of Emerson’s related-party transactions with Grande and its affiliates in August 2007 and promptly hired the law firm of Pinnisi & Anderson, LLP (“Pinnisi”) to investigate. In its initial report in October 2007, Pinnisi concluded that irregular transactions had occurred. Click here to read more…

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