Yet another former LandAmerica employee is taking a legal swing at the collapsed company’s heavy hitters.
A lawsuit filed March 20 against 15 former LandAmerica executives and directors seeks to blame them for losses suffered by the company’s pension fund during and in the wake of its downfall in 2009.
It’s the second such case filed in the past three months in Richmond federal court. Like its predecessor, the suit seeks to force the 15 defendants to foot the bill for millions of dollars of losses to the fund. The suit could also trigger insurance policies that the company would have had to potentially cover the executives and directors.
The two cases are similar enough in their claims that the newest suit was ordered into the same mediation process as the previous filing.
The newest case has sought class-action status and its lead plaintiff is Timothy O’Grady, who was a real estate manager at LandAmerica.
O’Grady claims that the defendants breached their fiduciary duty to the pension plan and its participants by continuing to imprudently invest its money in LandAmerica stock as the company headed for trouble. The 55-page lawsuit does not specify an amount of how much was lost.
He claims the defendants had “divided loyalty” and acted in their own interests rather than for the plan participants as a whole. They should therefore be personally liable to make good on any losses that resulted from those alleged breaches.
O’Grady’s case will join former LandAmerica employee Kerrie Borboa’s case in mediation beginning June 5. All sides will attempt to reach a settlement during that process.
The defendants include former LandAmerica chairman and chief executive Ted Chandler, former chief administrative officer Ross W. Dorneman, and former CFO G. William Evans. Among the former directors sued again in this latest suit are 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., Eugene Trani, 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.
Northern Virginia law firm Cuneo Gilbert & LaDuca, and Gainey McKenna & Egleston in New York are representing O’Grady.
Attorneys representing both sides could not be reached for comment.
Yet another former LandAmerica employee is taking a legal swing at the collapsed company’s heavy hitters.
A lawsuit filed March 20 against 15 former LandAmerica executives and directors seeks to blame them for losses suffered by the company’s pension fund during and in the wake of its downfall in 2009.
It’s the second such case filed in the past three months in Richmond federal court. Like its predecessor, the suit seeks to force the 15 defendants to foot the bill for millions of dollars of losses to the fund. The suit could also trigger insurance policies that the company would have had to potentially cover the executives and directors.
The two cases are similar enough in their claims that the newest suit was ordered into the same mediation process as the previous filing.
The newest case has sought class-action status and its lead plaintiff is Timothy O’Grady, who was a real estate manager at LandAmerica.
O’Grady claims that the defendants breached their fiduciary duty to the pension plan and its participants by continuing to imprudently invest its money in LandAmerica stock as the company headed for trouble. The 55-page lawsuit does not specify an amount of how much was lost.
He claims the defendants had “divided loyalty” and acted in their own interests rather than for the plan participants as a whole. They should therefore be personally liable to make good on any losses that resulted from those alleged breaches.
O’Grady’s case will join former LandAmerica employee Kerrie Borboa’s case in mediation beginning June 5. All sides will attempt to reach a settlement during that process.
The defendants include former LandAmerica chairman and chief executive Ted Chandler, former chief administrative officer Ross W. Dorneman, and former CFO G. William Evans. Among the former directors sued again in this latest suit are 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., Eugene Trani, 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.
Northern Virginia law firm Cuneo Gilbert & LaDuca, and Gainey McKenna & Egleston in New York are representing O’Grady.
Attorneys representing both sides could not be reached for comment.