Benny C. Goodman III

Notable among Benny Goodman's efforts on behalf of shareholders are several groundbreaking settlements in shareholder derivative actions related to stock option backdating by self-interested corporate insiders.

Benny C. Goodman III concentrates his practice in shareholder derivative actions and securities class actions.

Most recently, Mr. Goodman achieved groundbreaking settlements as lead counsel in a number of shareholder derivative actions related to stock option backdating by corporate insiders. Notable among Mr. Goodman’s recent backdating settlements are: In re KB Home S’holder Derivative Litig., No. CV-06-05148-FMC (C.D. Cal.) (extensive corporate governance changes, over $80 million cash back to the company); In re Affiliated Computer Servs. Derivative Litig., No. 06-CV-1110-M (N.D. Tex.) ($30 million); Gunther v. Tomasetta, et al., No. 06-CV-02529-R (C.D. Cal.) (corporate governance overhaul, including shareholder nominated directors, and cash payment to Vitesse from corporate insiders).

Mr. Goodman also recently earned a landmark ruling from the Washington State Supreme Court. In In re F5 Networks, Inc. Derivative Litig., 166 Wn.2d 229 (Wash. 2009), the Washington Supreme Court held that Washington applies Delaware’s demand futility standard rather than requiring universal demand as advocated by defendants. Additionally, the Court held that the reasoning found in Ryan v. Gifford, 918 A.2d 341 (Del. Ch. 2007), regarding demand futility in a stock option backdating case “follows naturally from Delaware's demand futility standard” and should be applied in Washington courts.

Mr. Goodman also represented over 60 public and private institutional investors that filed and settled individual actions in the WorldCom securities litigation. Additionally, Mr. Goodman successfully litigated several other notable securities class actions against companies such as Infonet Services Corporation, Global Crossing, and Fleming Companies, Inc., each of which resulted in significant recoveries for shareholders.

On the human rights front, Mr. Goodman was counsel for a class of over 50,000 Chinese garment workers on the island of Saipan in the Commonwealth of the Northern Mariana Islands who were being forced to work as indentured servants. The lawsuit resulted in a historic settlement with major United States clothing retailers and manufacturers, including The Gap, Ralph Lauren, Donna Karan, and Calvin Klein that included an agreement providing independent supervision of working conditions in Saipan garment factories and multi-million dollar compensation for unpaid overtime work performed by class members.