Bridgeport holdings liquidating trust v boyer

Then, they led him to believe that other opportunities awaited him.

bridgeport holdings liquidating trust v boyer-87

A., a construction company based in Athens, Greece which owned approximately 67% of TOUSA, Inc.'s stock at the time of the July 2007 transaction.

Count V alleges aiding and abetting breaches of fiduciary duties by Technical Olympic, S.

But, where, as here, the directors are said to have breached their duty of loyalty, it is fair to ask why.

Second, why would the independent directors knowingly sacrifice the company so that Magnacca could achieve his personal agenda? One might say that it is not the plaintiff's job to explain the personal motivations of men and women; that the facts speak for themselves.

Directors and officers must head off such claims because a breach of duty by directors and officers can lead to lawsuits against the corporation.

Case law, particularly the seminal Delaware case provides guidance on the fiduciary duties of directors and officers of companies facing bankruptcy and steps for directors and officers to shield themselves from liability.

According to the Trust, Standard General's attempts to co-opt Magnacca's loyalty manifested themselves both in actions and assurances.

A.; and (4) should be dismissed because the claims are moot anyway. 11, 2003) (breach of fiduciary duty case, relating to underlying fraudulent transfer, survived motion to dismiss).

The Trust alleges that the independent directors breached their duty of loyalty when they approved Magnacca's appointment to the board of American Apparel, and then made him the point man to negotiate with Standard General with respect to the financing that allegedly led to Radio Shack's demise. First, why would Magnacca sacrifice his position as head of one of America's most "iconic" retailers in exchange for such paltry and illusory consideration?

In return, Magnacca allegedly guided Radio Shack into an ill-fated recapitalization transaction with Standard General and away from other alternatives that would have brought more value to the company.

I find no cognizable claim that any of the directors of Radio Shack, including Magnacca, breached his or her duty of loyalty.

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