CompuServe Thread

#Gould & Ali Injunction?

7 messages in this thread
#185117From: E.R. BujtasFeb 10, 1995 6:34 PM
I think it's time for a class action suit against these two guys. Since they were fiduciaries, they do have some personal responsibility for the current C= situation. ..Andy from NJ
#185144From: J Saperstein/FontBankFeb 10, 1995 11:32 PM
"I think it's time for a class action suit against these two guys." On what grounds? Only shareholders would have a cause of action – and stock fraud suits are a dime a dozen. But I've heard of none against Commodore. "Since they were fiduciaries, they do have some personal responsibility for the current C= situation." How do you come to the conclusion that they were fiduciaries? And bad business judgment is exactly that and nothing more. You can't generally sue people just for being stupid. Jerry
#185168From: Dale LarsonFeb 11, 1995 6:33 AM
Gould and Ali are far from stupid. They are very rich, and it isn't with inherited money. It might be illgotten, but they seem to have gotten away with it, and that takes some brains, even if it also takes a lack of morals.
#185172From: E.R. BujtasFeb 11, 1995 8:09 AM
FALSE! A CEO/COO is a fiduciary. I know many who have been sued on those grounds. Andy
#185193From: J Saperstein/FontBankFeb 11, 1995 1:49 PM
"I know many who have been sued on those grounds." You must hang out with an interesting crowd of people. <G> "A CEO/COO is a fiduciary." I think you're wrong. The directors of a corporation are fiduciaries, but not the officers. See _Black's Law Dictionary_ (Fifth Edition), Page 563 – 564. Jerry
#185249From: gary vassalottiFeb 12, 1995 7:29 AM
I don't have my old annual reports, but werent Gould and Ali both members of the board of directors, and therefore, under that defininition, fiduciarires? Gary
#185282From: J Saperstein/FontBankFeb 12, 1995 1:55 PM
Could very well be, Gary. One thought I had in regard to the liability insurance issue: if Commodore had been routinely carrying director's liability insurance – almost a given – and it were simply coming up for renewal, then no one is going to find fault with the company renewing it. Gould is a very smart, if eccentric, man. I kind of doubt he would leave himself open to attack on something so simple. But stranger things have happened. Jerry