Recent Successes

Altisource Residential Corporation Derivative Litigation

Served as counsel for stockholders in a derivative action that claimed that an asset management agreement between Altisource Residential Corporation and Altisource Asset Management Corporation was unfair and reflected self-dealing.  The settlement consisted of a new asset management agreement that saved at least $144 million over the next five years for Altisource Residential Corporation and its stockholders.

The Police Retirement System Of St. Louis vs Erbey, et al., No.: 24-C-15-000223 (Baltimore City, Maryland Circuit Court)

ITT Educational Services, Inc. Derivative Litigation

Served as counsel for stockholders in a derivative action that claimed that ITT failed to properly account for its obligations under risk-sharing agreements with third-party lenders, overstated its financial results, failed to maintain adequate internal controls over financial reporting, and failed to disclose the extent of the risks that ITT faced under the risk-sharing agreements.  The Settlement was comprised of a series of corporate governance reforms undertaken by ITT which were designed to address governance shortcomings that contributed to the misconduct alleged in the derivative litigation, and will strengthen ITT’s governance and internal controls generally, providing lasting value to ITT and its shareholders.

Lawrence v. Modany, et al., No. 14-cv-2106 (United States District Court for the Southern District of Indiana)

Keyuan Petrochemicals, Inc. Derivative Litigation

Served as sole counsel for stockholders in a derivative action that claimed that Keyuan entered and failed to disclose related-party transactions between Keyuan and related parties, almost all of which were made to entities owned or controlled by Keyuan’s Chairman of the Board and Chief Executive Officer, and his affiliates.  The Settlement required Keyuan to hire two additional independent directors and a Code Compliance Officer, and to adopt a number of corporate governance and compliance enhancements, including putting in place a related-party transaction policy that:  determines whether proposed related-party transactions are material;  requires disclosure of proposed material related-party transactions to, and their approval by, Keyuan’s Board of Directors;  requires the Board to consider the fairness and purpose of proposed material related-party transactions and whether proposed material related-party transactions cause improper conflicts of interest in making the determination of whether to approve the proposed material related-party transactions;  and requires the Board to disclose to Keyuan shareholders all material related-party transactions that have been entered by Keyuan.

Kretowicz v. Tao, et al., No. 14-cv-918 (United States District Court for the Southern District of New York)