First Automotive Insurance Resolves Shareholder Derivative Claims

Represented First Automotive Insurance Risk Retention Group along with certain of its officers, directors, and related parties in defense of shareholder derivative actions in California and Hawaii alleging diversion of corporate assets, waste, and failure to adhere to fiduciary and corporate formalities.

Stradling also defended the company in a related lawsuit for judicial dissolution and another contract action relating to certain trust funds. The matters and related claims settled on terms favorable to our client, including a framework for future business venture among the parties.