A class-action lawsuit filed against 15 former heads of LandAmerica is headed for mediation as the two sides attempt to reach a settlement.
It’s a change of course for the case filed in late December by former LandAmerica employee Kerrie Borboa, who is seeking to blame the former top brass of the collapsed company for allegedly mishandling its pension fund. The case argues that the alleged mismanagement resulted in millions of dollars in losses for plan participants as LandAmerica foundered in 2008
It’s Borboa’s second attempt at suing the group of defendants. Among them are some big Richmond names, such as former LandAmerica chairman and chief executive Ted Chandler and former director Eugene Trani, who was previously president of Virginia Commonwealth University.
The two sides earlier this month asked a federal judge to put a hold on the case’s proceeding for 90 days to allow for formal mediation. They chose David Geronemus of dispute resolution firm JAMS to act as mediator.
The mediation will begin June 5, according to court records.
Borboa’s case is looking to force the former LandAmerica bosses to pony up to cover losses suffered by the pension fund. It could also potentially trigger insurance coverage that could still be in place to protect the insiders in such an instance.
A case against LandAmerica with a similar goal succeeded in 2012 when it sought to blame the board members and executives for the company’s collapse. That case won a settlement of $36 million paid for by an insurance policy. It initially sought $365 million in damages.
The Borboa suit alleges that the defendants failed in their fiduciary duty to manage the pension fund leading up to and during LandAmerica’s rapid demise in 2008. The suit specifically questions the fund’s strategy in those final months of keeping a significant portion of its money in LandAmerica Financial Group stock.
It has asked for a jury trial to win the repayment of all money lost from the plan as a result of the alleged breaches. An exact figure of potential damages was not included in the suit.
Borboa is represented in the case locally by Charles Williams and James Skilling of Williams & Skilling. Her lead attorneys are a team from Kessler Topaz Meltzer & Check in Pennsylvania.
The other defendants include former LandAmerica chief administrative officer Ross W. Dorneman, former CFO G. William Evans, and former directors Janet A. Alpert, Gale K. Caruso, Michael Dinkins, Charles H. Foster Jr., John P. McCann, Dianne M. Neal, Robert F. Norfleet Jr., Robert T. Skunda, Julious P. Smith Jr., Thomas G. Snead Jr. and Marshall B. Wishnack.
Attorneys in Washington, D.C. with Foley & Lardner are representing Chandler, Dorneman and Evans.
Attorneys from Skadden, Arps, Slate, Meagher & Flom are representing the 12 former directors.
Messages left the attorneys on the case were not returned by press time.
A class-action lawsuit filed against 15 former heads of LandAmerica is headed for mediation as the two sides attempt to reach a settlement.
It’s a change of course for the case filed in late December by former LandAmerica employee Kerrie Borboa, who is seeking to blame the former top brass of the collapsed company for allegedly mishandling its pension fund. The case argues that the alleged mismanagement resulted in millions of dollars in losses for plan participants as LandAmerica foundered in 2008
It’s Borboa’s second attempt at suing the group of defendants. Among them are some big Richmond names, such as former LandAmerica chairman and chief executive Ted Chandler and former director Eugene Trani, who was previously president of Virginia Commonwealth University.
The two sides earlier this month asked a federal judge to put a hold on the case’s proceeding for 90 days to allow for formal mediation. They chose David Geronemus of dispute resolution firm JAMS to act as mediator.
The mediation will begin June 5, according to court records.
Borboa’s case is looking to force the former LandAmerica bosses to pony up to cover losses suffered by the pension fund. It could also potentially trigger insurance coverage that could still be in place to protect the insiders in such an instance.
A case against LandAmerica with a similar goal succeeded in 2012 when it sought to blame the board members and executives for the company’s collapse. That case won a settlement of $36 million paid for by an insurance policy. It initially sought $365 million in damages.
The Borboa suit alleges that the defendants failed in their fiduciary duty to manage the pension fund leading up to and during LandAmerica’s rapid demise in 2008. The suit specifically questions the fund’s strategy in those final months of keeping a significant portion of its money in LandAmerica Financial Group stock.
It has asked for a jury trial to win the repayment of all money lost from the plan as a result of the alleged breaches. An exact figure of potential damages was not included in the suit.
Borboa is represented in the case locally by Charles Williams and James Skilling of Williams & Skilling. Her lead attorneys are a team from Kessler Topaz Meltzer & Check in Pennsylvania.
The other defendants include former LandAmerica chief administrative officer Ross W. Dorneman, former CFO G. William Evans, and former directors Janet A. Alpert, Gale K. Caruso, Michael Dinkins, Charles H. Foster Jr., John P. McCann, Dianne M. Neal, Robert F. Norfleet Jr., Robert T. Skunda, Julious P. Smith Jr., Thomas G. Snead Jr. and Marshall B. Wishnack.
Attorneys in Washington, D.C. with Foley & Lardner are representing Chandler, Dorneman and Evans.
Attorneys from Skadden, Arps, Slate, Meagher & Flom are representing the 12 former directors.
Messages left the attorneys on the case were not returned by press time.