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Overturning a multimillion-dollar verdict, the 2nd Circuit has reversed a federal judge's refusal to grant a jury trial to director defendants and officers accused by a bankruptcy trustee of breaching their fiduciary duties. The ruling gives defendants a second chance to prevail in defending claims that they mismanaged assets of Trace International Holdings. Trace's CEO was accused of exhausting the company's capital partly with a large salary, a loan and a $1 million birthday party for himself.
July 07, 2005 at 12:00 AM
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The original version of this story was published on Law.Com
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