Category Archives: Shareholder Disputes
Where Should a Shareholder File a Lawsuit?
Are you a shareholder who is considering taking legal action against a corporation? Whether you are considering filing a direct action or a derivative action, it is crucial that you understand the appropriate venue for your case. At Pike & Lustig, LLP, we have deep experience with shareholder law. Here, our Miami shareholder dispute… 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 »
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 »
Tesla Seeks to Revive Compensation Package for Elon Musk (Previously Blocked By Judge)
On April 18th, 2024, the New York Times reported that Tesla is seeking to revive the approximately $56 billion compensation package for Chief Executive Officer (CEO) Elon Musk. The package was voided earlier this year by a Delaware Chancery Court after a shareholder dispute was filed. Here, our West Palm Beach shareholder dispute attorney… 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 »
Netflix Prevails in a Shareholder Lawsuit Over Account-Sharing
On January 8th, 2024, Reuters reported that Netflix prevailed in court in a shareholder lawsuit. The lawsuit—which was brought on behalf of Netflix shareholders between January of 2021 and April of 2022—alleged that the company made material misrepresentations about the extent to which account-sharing was hurting its growth. Here, our Miami shareholder dispute attorney… Read More »
Meta Seeking Dismissal of Shareholder Lawsuit Against Corporate Directors
On December 20th, 2023, ABC News reported that Meta—the Silicon Valley-based social media giant—is seeking the dismissal of a shareholder lawsuit that was filed against several of its corporate directors. The lawsuit makes the relatively novel argument that officers at the Fortune 500 company owe duties not just to the corporation itself, but also… Read More »
Can a Shareholder Hold a Corporate Liable for Excessive Executive Compensation?
How much should a corporation pay its executives? The answer is “it depends.” What constitutes appropriate compensation is highly case-specific. That being said, there are certainly some circumstances in which a corporation may pay its executives so much that it constitutes unreasonable excessive compensation. It could give rise to a claim by shareholders. Here,… 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 »
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 »
Shareholder Drops Lawsuit Against LifeWallet
According to a report from the Miami New Times, a shareholder has dropped a lawsuit against LifeWallet—a collection company headquartered in South Florida. Notably, the publicly-traded company’s stock price has collapsed in recent years—falling sharply in the Spring of 2023 following restated financials that showed that the business had losses that were dramatically larger… 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 »
Forum Selection Clause Upheld in Shareholder Dispute
According to a report from Reuters, a federal judge in Texas has upheld a forum selection clause in a shareholder derivative agreement. In doing so, the court effectively ended a shareholder derivative lawsuit filed against the company SolarWinds. Here, our Miami shareholder rights lawyer discusses the case and highlights the key things to understand… Read More »
Shareholder Litigation: Ryanair Settles Lawsuit Regarding Unionization Comments
According to a report from Reuters, Ryanair—the Ireland headquartered discount airline—has agreed to settle a shareholder lawsuit over comments a corporate executive made regarding the unionization of the workforce. Within this blog post, our Miami shareholder dispute attorney provides an overview of the Ryanair shareholder settlement. Ryanair Leadership Allegedly Misrepresented Willingness to Accept Worker… Read More »
What is the Florida Business Judgment Rule and How Does it Apply to Shareholder Litigation?
A minority shareholder puts faith in the hands of the officers, directors, and other decision makers of a corporation. When something goes terribly wrong, a shareholder may have a claim against the company. However, corporate officers and corporate directors have wide latitude to make business decisions. Shareholders take on certain inherent risks when investing… Read More »
Tentative Settlement: Apple and Shareholders Agree to Resolve “Batterygate” Case
According to a report from Bloomberg Law that was published on June 16th, 2023, Apple has reached a tentative agreement with its shareholders to resolve “batterygate.” The case was centered around a derivative lawsuit that was filed over an alleged Apple update that slowed down iPhones. The settlement still needs to be approved by… Read More »
Supreme Court Issues Ruling in Key Shareholder Rights Case
According to a report from Bloomberg Law News, the Supreme Court of the United States issued an instructive ruling in the shareholder rights case of Slack Technologies, LLC v. Pirani. In partially overruling the Ninth Circuit Court of Appeals, the nation’s highest court limited the ability of shareholders to file certain lawsuits. Within this… Read More »
Wells Fargo Agrees to $1 Billion in Shareholder Lawsuit
According to a report from The Washington Post, Wells Fargo—the massive San Francisco-based financial services company—has agreed to pay out approximately $1 billion to settle a shareholder lawsuit. The shareholder complaint alleged that the company made material misrepresentations to shareholders regarding its efforts to resolve the 2016 fake account scandal that rocked the industry…. Read More »
Shareholder Litigation: Amazon Prevails In Proposed Biometric Privacy Lawsuit
According to a report from Bloomberg Law, Amazon has prevailed in a key procedural matter in a BIPA lawsuit filed by a shareholder. A plaintiff shareholder sought to open up an investigation into the company over possible violations of state biometric lawsuits—specifically the Illinois Biometric Information Privacy Act. The plaintiff alleged damage to their… Read More »
