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.

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. Judgment, comprised entirely of proven economic (not punitive) damages, was affirmed by the Alabama Supreme Court (February 2011).

  • 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.

  • Prosecuted (2004-2009) and, after overcoming motions to dismiss (2009), settled (2010) a major derivative suit on behalf of a leading insurance broker corporation against certain of its fiduciaries for alleged failure of oversight that enabled a kickback scheme to rage for seven years.  Suit was a material factor in securing payment of $205 million by insurers to the corporation.

  • 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. This is the first time that any American jurisdiction ever required a CEO to return incentive bonuses to his corporation, an excellent precedent for American corporate governance.

  • 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