Zuckerman Spaeder LLP to Represent Shareholder on Behalf of City National in Suit Against Board, Officers
Building on our recent successes in shareholder derivative litigation, Zuckerman Spaeder has recently filed suit on behalf of City National Bank, a West Virginia-based national bank that lost millions of dollars in risky investment schemes embraced by its board of directors and senior officers. The case, which is pending in the Circuit Court for Kanawha County, West Virginia, was filed by a City National shareholder who saw that the board and officers — left to themselves — would never act to protect the bank's interests. Washington partners Carl S. Kravitz and Blair G. Brown represent the shareholder, suing derivatively on behalf of the bank, which seeks recovery from the bank's directors and officers.
Not surprisingly, the officers and directors are resisting the suit on the basis that the shareholders should have made demand on the bank's board of directors to, in effect, sue themselves. Zuckerman Spaeder recently opposed this request.
The City National case is the most recent example of the firm's expertise in corporate governance matters, high-stakes litigation, and officer/director liability claims.