Victory for Minority Shareholder of Major World Used Car Dealership
We represented a minority shareholder in Major World, New York City’s largest used car dealership. Our client brought suit against Major World and its directors and officers for breach of fiduciary duty in bringing about a going-private buyout at an exceedingly low price. The case has an unusual cast of characters, including a movie producer and a federal prisoner. The defendants tried repeatedly to slow the process and move for dismissal on a variety of specious grounds. Pierce Atwood prevailed at every turn, with the defendants and all their outside directors bearing the burden of proving that the transaction was entirely fair to minority shareholders. The court also held that the controlling stockholder’s brother can even be found liable for aiding and abetting – a cause of action we did not even plead. The stage is now set for mediation, which will also include a large D&O insurance carrier.