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.|
Copyright©2008 PR Newswire.
All rights reserved