Jury Award to Englewood Company to Total More Than $1 Million for Breach of Fiduciary Duties in Shareholder Class Action Case
Published In: Business, Colorado 
Thursday, July 24, 2008 8:43 PM
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ENGLEWOOD, Colo., July 24 /PRNewswire/ -- An Arapahoe County District
Court jury awarded an Englewood-based public company what will likely amount
to more than $1 million in damages in the class action dispute between the
minority shareholders of Inverness-based Verex, Inc., a public company, and a
Fort Collins-based private company PR Pharmaceuticals, Inc. The jury found
that PR Pharmaceuticals and its President, Steven Howe, and CEO, Dr. Patrick
Bols, breached their fiduciary duties to Verex, Inc., and its shareholders.

The verdict for the class of minority shareholders is in favor of
approximately 1185 shareholders holding 1,195,470 shares. The court has
previously indicated that it may value those shares at $ .50/share for a total
value of $597,735. The jury awarded punitive dames against all of the
defendants and in favor of Verex, Inc. With this value, the verdict is
approximately $1.3 million. Prejudgment interest is substantial with this
case having been filed in 2003. Total damages including interest are expected
to bring the value of the verdict to over $2 million dollars.

"We are, of course, delighted that after all of these years, our clients
have finally gotten this matter resolved," said Plaintiffs' trial lead counsel
David P. Hersh of Burg Simpson Eldredge Hersh & Jardine, P.C. Hersh added,
"The Defendants never acknowledged their wrongdoing, and so it is particularly
gratifying to receive the jury's determination that the Defendants not only
breached their fiduciary duties, but did so willfully and wantonly, justifying
an award of punitive damages."

The jury found that the former majority shareholders violated their
respective fiduciary duties for the benefit of themselves and to the detriment
of the present company shareholders.

"It's good to win vindication for the little guys -- this is what we
practice law for -- to fight injustice, even against big companies at great
odds," said Plaintiffs' trial counsel David K. TeSelle.


SOURCE Burg Simpson Eldredge Hersh & Jardine, P.C.


 
Thursday, July 24, 2008 8:43 PM

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