“We’ve entered a new era in American history where corporate reforms can be achieved not only through legislation or federal regulation, but through binding legal agreements.”– Robert A.G. Monks, corporate governance expert
Changing the way companies govern themselves is important to investors. Our lawyers regularly achieve through settlement or court order significant corporate governance changes that benefit shareholders. For example, in In re Oracle Corp. Derivative Litigation, we won a decision The Wall Street Journal called “one of the most far-reaching ever on corporate governance.”
In City of St. Clair Shores P&F Ret. Sys v. Affiliated Computer Services, Inc., we obtained a corporate governance result The New York Times Deal Professor deemed both “far-reaching” and “unprecedented. Our numerous court-approved settlements resulting from extensive shareholder derivative litigation our clients initiated in response to the nationwide options backdating scandals have not only changed corporate boards and the ways companies govern themselves, but have also enhanced internal controls and modified option granting plans and procedures towards preventing backdating.
Our case, Hanover Compressor, helped lead the way in bringing about governance changes and helping institutional investors, including Taft-Hartley Funds, use litigation as a powerful tool to gain corporate accountability. The governance changes we obtained in the Hanover case include direct shareholder nomination of directors and mandatory rotation of the company’s outside audit firm – plus an $80 million recovery for shareholders. As these governance changes took effect at Hanover Compressor, the stock market responded favorably and the company’s stock price increased by more than 75%, providing shareholders with even more value in the long run. If you'd like to read more about Hanover, click here.
- September 12, 2011
- January 7, 2010
- February 24, 2009