And . . . They're Off and Running
BUSINESS LITIGATION SESSION
Several individuals have filed suit claiming that they should have received proceeds from the sale of the Suffolk Downs racetrack. The individuals own interests in Coastal Development SSR, LLC, which owned a 40% interest in Sterling Suffolk Racecourse LLC, the entity which operated Suffolk Downs. Plaintiffs allege that proceeds from the sale of Suffolk Downs totaled approximately $70 million (approximately $27 million of which went to Coastal Development SSR), and that under the Coastal Development SSR limited liability company agreement, approximately 9.3% of those proceeds should have been distributed to the plaintiffs.
The Commonwealth Sues Over Massive Data Breach
BUSINESS LITIGATION SESSION
Following the Equifax data breach that has garnered much publicity (and criticism), the Commonwealth has filed an action against Equifax under the Massachusetts Consumer Protection Act and Massachusetts Data Security Law. The complaint alleges that Equifax used open-source code that it knew or should have known was insecure, and refused to take any measures to fix the vulnerability or to employ any other measures to protect consumer data. It further alleges that Equifax has exposed over half of the adult population of Massachusetts to the risks of identity theft, financial fraud, and other harms, and seeks injunctive relief, civil penalties, disgorgement of profits, restitution, costs, and attorney's fees.
Family Feud
BUSINESS LITIGATION SESSION
Mark Perfetti has filed an action against his three brothers and Ideal Instrument Co., Inc., the company founded by their now-deceased parents and of which the brothers are all co-owners, alleging that they have breached their fiduciary duties by freezing him out of the company and diverting profits to themselves. The plaintiff currently holds 20% of the shares of the company, while each of his brothers owns $26.67% of the shares. His brothers removed him as a director in 2004 and, apparently since that time, have allegedly failed to pay dividends, and have instead paid themselves excessive salaries, bonuses, and the like. Although at one time the defendants suggested that they sell business, plaintiff alleges that no real effort was made to sell the company to a third party, and instead a "calculation value" was performed in order to justify offering only $200,000 to purchase the plaintiff's shares (as well as his interest in a separate trust).
