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Appellate Division Unanimously Affirms Dismissal of Suit Against Rekor Director

Order –

The First Department Appellate Division unanimously affirmed the dismissal of a breach of fiduciary duty and libel action argued by Fleischman Bonner & Rocco, LLP Partner James P. Bonner in Suzanne Loughlin, et al. v. Paul de Bary, Index No. 155590/20, Case Nos. 2022-01948; 2022-04110. The decision, affirming an earlier FBR LLP victory before the Hon. James Edward D’Auguste in New York Supreme Court, found that plaintiff-appellants failed to state a claim for breach of fiduciary duty owed to them as shareholders, and failed to allege how the defendant-director’s alleged conduct harmed them as shareholders. The Appellate Division also dismissed plaintiff-appellants’ libel claim, finding that the statement in question was protected by a common interest qualified privilege, and that the pleading lacked adequate allegations of actual or common-law malice to overcome such privilege.

Thu Jan 26, 12:00pm