Complete Dismissal Affirmed in Shareholder Derivative Action Alleging Breach of Fiduciary Duty

Stein Adler attorneys Adam Stein and Matt Rosselli successfully defended a group of corporate officers and directors in a shareholder derivative action in Kings County Supreme Court, where the plaintiff alleged breach of fiduciary duty and conversion of corporate assets in connection with alleged unreported cash payments and diverted funds. The court dismissed all claims in full, finding that many were time-barred and that the remaining allegations were insufficient under New York’s heightened pleading standard for breach of fiduciary duty claims. The Appellate Division, Second Department affirmed the dismissal, bringing a complete end to the litigation. This victory underscores Stein Adler’s experience in defending complex shareholder and corporate governance disputes, from trial court through appeal.