Dismissal of Claims Against Friedman Kaplan Clients in Connection with Alleged "Raid" Upheld on Appeal
The Appellate Division, First Department of the Supreme Court of the State of New York today issued a decision affirming the Supreme Court's grant of summary judgment in favor of Friedman Kaplan's clients in connection with a long-running employment dispute related to the firm’s clients’ departure from a former employer in the wake of the financial crisis.
Beginning in 2009, at the request of their new employer, Friedman Kaplan partners Lance Gotko and Philippe Adler represented three former top executives of a major insurance company who, along with approximately 60 of their junior colleagues, resigned from their positions in 2008 to join another large insurance company. Our clients’ former employer alleged that the move constituted a "raid" and signified a breach of the executives’ fiduciary duties. Messrs. Gotko and Adler successfully argued that the plaintiff’s business had already been failing to such a degree at the time of our clients’ departure that it could not prove damages or causation in connection with the alleged wrongdoing that occurred during the “raid.”
“We are extremely pleased that both the Supreme Court and the Appellate Division, First Department agreed with our arguments, and that this chapter has finally come to a close for our clients,” said Mr. Gotko.