ABBEY SPANIER RODD & ABRAMS, LLP ANNOUNCES DELAWARE SUPREME COURT REVERSAL IN PRIMEDIA INC. SHAREHOLDER LAWSUIT
Abbey Spanier Rodd & Abrams, LLP announces that the Delaware Supreme Court reversed the dismissal of a shareholder derivative lawsuit on behalf of Primedia Inc. (PRM) seeking to recoup monies arising out of alleged insider trading in Primedia's securities by KKR, the Company's controlling shareholder.
Judith L. Spanier, of Abbey Spanier Rodd & Abrams, LLP argued before the Supreme Court on behalf of the plaintiffs.
In June 2010 the Chancery Court ruled that plaintiffs could not proceed with their derivative claims because they could not show KKR's actions caused actual harm to Primedia. In reversing the lower court's decision, the Supreme Court held that "[a]ctual harm to the corporation is not required" for investors to state breach-of-fiduciary duty claims like those leveled against KKR. The Supreme Court held, "[w]e find no reasonable public policy ground to restrict the scope of disgorgement remedy."
The Court sent the case back to the Chancery Court for reconsideration.