Fleming Wins Derivative Claim
On behalf of a hedge fund client, we commenced a derivative action challenging a Board's defensive measures as an unlawful vote buying scheme and also seeking to recover excess compensation paid to its CEO. The Board responded by appointing a Special Litigation Committee, which to no one's surprise issued a report favorable to the Board. We successfully challenged at trial the Committee's Report and persuaded the judge that its investigation of our claims was deficient and that its conclusions were unreasonable. (Opinion of the Court). This marks a rare victory for a derivative plaintiff against the Special Litigation Committee defense and the first reported trial of this defense under New Jersey law. The New Jersey Law Journal reported the decision on page 1 of its May 1 edition (subscription required). Thomas J. Fleming and Jack Kint comprised Olshan's team.