David Harper, Karen Precella, George Parker Young and Nina Cortell in Law360: $88M Verdict Tossed in Shareholder Oppression Suit
A Texas appellate court on Wednesday struck down an $88 million judgment against Argo Data Resource Corp., holding there was not enough evidence to support a jury finding of shareholder oppression against the company’s co-founder...
The appellate court said there was not enough evidence the company sought to wrongfully retain its profits and deny Shagrithaya dividends because he was a minority shareholder. When the company did issue dividends, Shagrithaya got his proportional share, $11 million, between 2003 and 2007, according to the opinion. The panel held none of the 11 acts the jury found in support of Shagrithaya’s shareholder complaint or his claim for “malicious suppression of dividends” constituted minority shareholder oppression, and it rendered a judgment that he take nothing.
“Argo Data is very pleased that the appellate court completely vindicated its conduct and that of its CEO, Max Martin,” said David Harper of Haynes and Boone, LLP, one of the lead trial lawyers for the company, on Thursday. “The court meticulously reviewed all the conduct at issue and found that each alleged wrong was not shareholder oppression and did not cause any harm. This is what we contended all along and it is very satisfying to secure this result…”
Argo was represented by Karen Precella, David Harper, George Parker Young and Nina Cortell of Haynes and Boone.
Excerpted from Law360, August 31, 2012. To view full article, click here (subscription required).