Judge rejects bulk of Idealab suit, refiling expected. (Up Front).The group of Idealab Inc. investors that sued the company in January seeking $1 billion and the technology incubator's dissolution have had the bulk of their claims rejected by a Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Superior Court judge. The July 2 ruling by Judge Ralph Dau found in favor of Idealab on all but two counts, ordering the company to turn over its quarterly reports to the shareholders and to have its March 14 shareholder meeting certified correctly. On all other issues, including the request to dissolve the company and the removal of its board, Dau ruled the investors failed "to state facts sufficient to constitute a cause of action." Douglas McPherson, general counsel at Idealab, said, "The court's order is consistent with our view of the case. We were pleased to see all the substantive causes of action dismissed." The investors are likely to, re-file their complaint, which included allegations of breach of fiduciary duty Noun 1. fiduciary duty - the legal duty of a fiduciary to act in the best interests of the beneficiary legal duty - acts which the law requires be done or forborne and deceit. Skip Miller, a partner at Christensen Miller Fink Jacobs Glaser Weil & Shapiro LLP LLP - Lower Layer Protocol and representing the plaintiffs, would not talk about the ruling. He issued a statement through a spokesman that said, "The judge requested more details regarding specific claims made in the lawsuit filed by Idealab's preferred shareholders... We intend to file an amended complaint amended complaint n. what results when the party suing (plaintiff or petitioner) changes the complaint he/she has filed. It must be in writing, and can be done before the complaint is served on any defendant, by agreement between the parties (usually their lawyers), with the additional information requested by the court." Having to re-draft a lawsuit is common in most litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. matters, said Tom Van Wyngarden, a partner at Morgan Lewis & Bockius LLP in L.A. Among the plaintiffs are Moore Global Investments Ltd., T. Rowe Price T. Rowe Price (NASDAQ: TROW) is an independent global investment management firm and mutual fund manager based in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.. T. Science & Technology Fund and Dell USA LP. The group, which represents 10 percent of Idealab's shareholders, named Chief Executive Bill Gross and other officers of the company in a Jan. 18 complaint alleging the squandering squan·der tr.v. squan·dered, squan·der·ing, squan·ders 1. To spend wastefully or extravagantly; dissipate. See Synonyms at waste. 2. of $500 million of the $1 billion they invested in late 1999 and early 2000. The investors claimed in court documents that Gross and other executives used shareholder funds to purchase Idealab shares, triple executive salaries and provide collateral on personal bank loans. The suit claims most of the 26 Internet and technology companies incubated at Pasadena-based Idealab have failed. Idealab now has 15 incubated companies listed on its Web site. Investors are asking Idealab for $500 million in losses plus $500 million in damages. |
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