LAW 3111H Chapter Notes - Chapter Ch 9: Fiduciary, Scienter, Consent Decree
Document Summary
White flame: turning corn into gas, approached board of co-op for a loan. White gave personal guarantees, keeps losing money, he wants out of it. He wants the personal guarantees of 4 mil out of it. He gets the co-op to sue him that he promised to give them all of the business. He signs a consent decree, that admits he is wrong. Backdated everything so now co-op owns the failing business. Main thing to look @ when determining if you can sue: Yes he did buy (he bought the entire company) Beings to draw up a list of potential 10b-5 defendant a. i. And they had no idea: jack"s attorneys a. It almost doesn"t matter if he"s incredibly stupid. Tons of laws over the states that have breach of fiduciary duty. Agent or an employee have to do what"s best interest in company.
