Interesting Shareholder Litigation

Posted on June 27th, 2011

Ross Perot, Jr. – son of Bill Clinton’s election spoiler buddy from the 1992 US Presidential election – owns 5 percent of the stock of the Dallas Mavericks basketball team.

As a minority stockholder, he has sued the team alleging, under the majority ownership of Mark Cuban, “a litany of questionable, business, financial, and personnel” decisions amounting to mismanagement of the team.

Cuban’s lawyer filed a motion asking the court to throw out the case. In support the lawyer submitted just 93 words of argument, and a picture worth at least a thousand words:
“On June 12, 2011, the World Champion Dallas Mavericks defeated the Miami Heat to claim the franchise’s first NBA championship. A true and correct photo of one of the many victory celebrations is incorporated herein.

“Under Hillwood’s [Perot’s] ownership, the team was deemed the ‘worst franchise’ in all of professional sports. Under Cuban’s stewardship the Mavericks have become one of the league’s most successful teams and are now NBA champions. Accordingly, there can be no genuine question that Hillwood’s claims of mismanagement lack merit and Hillwood’s claims should be disposed of on summary judgment.”

We’ll see how it all turns out, but it’s an interesting case study in the ongoing saga of Congress lighting up shareholders with the primary importance of their self-interests.

Story thanks to the blog of Law professor Jonathan Turley, who will doubtless follow and report on this story through its conclusion.

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