Professional Liability Litigation

Representation of a Big Four auditing firm in negligence and breach of contract case

Currently representing a Big Four auditing firm in a case brought by the bankruptcy trustee of an insurance holding company. The case involves allegations of negligence and breach of contract arising from alleged accounting malpractice over several audit years.

Representation of the outside directors of corporation in a derivative shareholder lawsuit

Represented the outside directors of an Alabama-based corporation in a derivative shareholder lawsuit brought by dissenting shareholders who objected to a merger recommended by our clients. During discovery, the dissenting shareholders agreed to dismiss their claims against our clients with prejudice.

Representation of a Big Four accounting firm in a putative class action

Represented a Big Four accounting firm in a putative class action brought by purchasers of bonds issued by a bankrupt company. We secured a dismissal of the claims based upon the Securities Litigation Uniform Standards Act, a decision upheld by the Alabama Supreme Court. A later version of the case was also dismissed against our client pursuant to the statute of limitations.

Represented the majority shareholder of a closely-held corporation in breach of fiduciary duty/shareholder's derivative lawsuit

Represented the majority shareholder of a closely-held corporation in a breach of fiduciary duty/shareholder’s derivative lawsuit filed by a minority shareholder alleging that our client, the majority shareholder, had converted money and paid herself and her husband “exorbitant” salaries. The case was resolved with the entry of summary judgment in our client’s favor.

Consulted with directors and officers of a privately-held corporation to mitigate risks

Consulted with directors and officers of a privately-held corporation to mitigate risks, including advice on actions to take in order to take advantage of the business judgment rule defense if our clients’ actions in connection with a distribution to certain classes of shareholders were later challenged.

Represented the outside directors of a publicly traded athletic shoe retailer in a series of litigations

Represented the outside directors of a publicly traded athletic shoe retailer in a series of litigations, including federal securities law class actions brought by the bankrupt company’s shareholders and bondholders and several individual cases. The class actions were resolved before trial within the limits of available D&O insurance.

Represented the outside directors of a major grocery store chain

Represented the outside directors of a major grocery store chain in a claim by the unsecured creditors of the chain, who alleged breaches of the directors’ fiduciary duties. The bankruptcy court permitted the unsecured creditors’ committee to file the claims in Mississippi state court, where the committee sought in excess of $1 billion. After extensive discovery, the claims were settled for less than 5% of the original demand.

Represented the officers and directors of a furniture manufacturer

Represented the officers and directors of a furniture manufacturer against breach of fiduciary duty claims asserted in Mississippi state court.

Represented the outside directors and officers of a start-up telecommunications firm