Vindicating the Public Interest through Civil Litigation.
 


Most corporate insiders are faithful to their trust.  Responsible civil litigation has played a crucial role in keeping many of them that way.

That’s why after three decades of representing corporations (see Biography), I have dedicated my energies to representing those whom I think have been victims of unfaithful corporate insiders or unfair use of corporate power.  I represent plaintiff shareholders in suits alleging breach of fiduciary duty by corporate insiders.

I am solo, and my office limits itself to about four cases at any time.  In all my cases, I team up with larger firms as co-counsel, but I am actively involved, hands-on, in all my cases.  (See Description of Practice). 

I represent derivative plaintiffs in the HealthSouth derivative case now in Alabama state court.  I am co-lead counsel in the derivative suit involving Marsh & McLennan in the Delaware Court of Chancery. 

Recent highlights include (See Judicial Decisions): 

  • Proving at an of eleven-day bench trial (May 2009) that Richard Scrushy directed the accounting fraud at HealthSouth, and winning a $2.89 billion judgement against him based on his breach of fiduciary duty. This is believed to be the largest judgement against an individual in American history.

  • Recovering (2009) $133 million in settlement on the verge of trial from a Swiss-based investment bank based on a claim of aiding and abetting the wrongdoing at HealthSouth. This brought to $304 million the total recovered for and on behalf of the corporation, a record in a shareholders’ derivative suit in any American jurisdiction.

  • Winning (2006) and collecting (2007) a $52.8 million judgment against Richard Scrushy in Alabama, requiring him to give back incentive bonuses he received as CEO based on unjust enrichment theory.

  • Winning (2004) and collecting (2005) an $18 million judgment against Richard Scrushy in Delaware.

  • Successfully challenging as unfair the price offered to minority shareholders of a regional insurance company in a force-out merger. Suit succeeded in obtaining 25% above the announced offer price.

  • Winning a contested class certification and judgment on behalf of class of forced-out minority shareholders of a public New Jersey corporation – judgment adds 60% to merger price they otherwise would have received.

  • Winning a contested class certification and a summary judgment as to liability on behalf of a class of forced-out minority shareholders of a private Delaware corporation – settlement adds 55% to merger price they received.

 Enjoy your visit to our website, and visit it often.

 

Frank P. DiPrima