Dias v. Purches, et al.

This matter was before the court on defendant's Motion to Stay. After Perfumania announced an agreement to acquire defendant, Shirley Anderson, purportedly a stockholder of defendant, filed an action challenging the acquisition in a Florida state court (Florida Action). Arthur Weill filed a Motion to Intervene in the Florida Action; after that motion was denied, Weill filed a stockholder class action complaint similar to Anderson's and moved to consolidate his case with the Florida Action. Plaintiff filed the instant action. All three actions sought to enjoin the takeover of defendant, on behalf of a stockholder class, based upon similar allegations of inadequate disclosure and breach of fiduciary duty. Defendant sought a stay in favor of the Florida Action under the doctrine explained in McWane Cast Iron Pipe Corp. v. McDowell-Wellman Engineering Co. Discounting, as the court found appropriate, the first-filed nature of the Florida Action, the court found nothing that indicated that this matter should be stayed in deference to the Florida Action. To the contrary, the interest of the the state in the behavior of fiduciaries for its corporate citizens convinced the court that the Motion to Stay must be denied. View "Dias v. Purches, et al." on Justia Law