Glenn Westreich and Jason Gonder in Law360: Judge Tosses Shareholder Claims Over Nanotech Patents

01/29/2014


A California federal judge on Tuesday dismissed shareholder derivative claims against Richard Demaray, part of a suit alleging Demaray purchased patents for himself instead of for his company, Antropy Inc., ruling the Antropy executive who brought the suit did not own shares and had no standing.

U.S. Magistrate Judge Elizabeth D. Laporte rejected plaintiff Christopher White’s argument that even though he was not a shareholder, he should be allowed to bring the suit because he was an equitable owner of Antropy stock. White, who is Antropy’s director, claimed that sole owner Demaray promised to issue more shares and sell them to White...

“However, each of these cases involved a contract regarding existing stock from which the courts could readily determine that the plaintiffs were equitable owners of specific property,” Judge Laporte wrote. “Here, plaintiff asks the court to determine that he is the equitable owner of stock that was not issued...”

Demaray is represented by Glenn E. Westreich and Jason M. Gonder of Haynes and Boone, LLP.

Excerpted from Law360, January 29, 2014. To view full article, click here (subscription required).

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