June 19, 2013
Partner Jonathan K. Cooperman was mentioned in the Law360 article, “Shareholder’s Securities Suit Against Nautilus Tossed.” The article discusses how a Delaware federal judge tossed a shareholder’s suit against Nautilus Neurosciences, Inc. leaders and its private equity backers alleging they breached fiduciary duties and wrongfully diluted the pharmaceutical company’s value, finding that the claims were derivative and weren’t properly addressed to the company’s board before the lawsuit was filed.
Nautilus founder Jim Fares claimed that the company's controlling shareholder, Tailwind Investor, had diluted the value of his shares and that this had a direct adverse effect on him, according to Wednesday's order. U.S. District Judge Sue L. Robinson, however, found that the equity dilution claim was derivative, meaning that Fares was tangentially affected by actions that allegedly harmed the company.
Kelley Drye partner Jonathan K. Cooperman represented Nautilus Neurosciences in this case.
To read the full article, please click on link below.