Please ensure Javascript is enabled for purposes of website accessibility
Home / Opinion Digests / Corporate / Corporate — Individual Shareholder – Embezzling Officer – Derivative Action

Corporate — Individual Shareholder – Embezzling Officer – Derivative Action

Raymond James Capital Partners, L.P. v. Hayes (Lawyers Weekly No. 011-259-16, 14 pp.) (Ann Marie Calabria, J.) Appealed from Caldwell County Superior Court (Robert Ervin, J.) N.C. App.

Holding: Where the plaintiff-shareholder alleges that the defendant-corporate officer breached her duties to the corporation by embezzling corporate funds and that plaintiff’s share price was thereby reduced when the corporation was sold, plaintiff has not alleged that it was owed a special duty or that its injury was separate and distinct from that of other shareholders. Plaintiff has not stated an individual claim against defendant and should have instituted a shareholder’s derivative action.

We affirm the trial court’s grant of defendant’s motion to dismiss.


Leave a Reply

Your email address will not be published. Required fields are marked *

*