Appellate Victory in connection with shareholder derivative action

Trachtenberg & Arena wins appeal in connection with shareholder derivative action brought by the defendant corporation’s former president and the former chairman of board.  Defendant corporation is a software company that provides merchandise planning and demand forecasting products and other management solutions to global retailers and wholesale brands in the apparel, footwear, and accessories industries.  Plaintiffs allege that the current CEO and other current and former executives of the company engaged in massive mismanagement, breaches of fiduciary duty, unjust enrichment, misappropriation, diversion of assets, and acted to deliberately conceal such wrongful conduct.  The New York State Supreme Court, Appellate Division, First Department unanimously ruled that Plaintiffs’ claims are sustained and the derivative suit may proceed.

Read decision here.