ORLANDO, FL – March 23, 2009 - Baker Hostetler announced today a major victory for its clients, the Plaintiffs in a shareholder derivative action brought on behalf of Plaintiffs Shareholders Corporation ("PSC"), a corporation in which each of the Plaintiffs owns shares, against Southern Farm Bureau Life Insurance Company. A Florida Federal Court jury ruled in favor of the Plaintiff, awarding PSC $31.7 million.
PSC's lawsuit sought monetary damages for violations of Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 and fraud under Florida common law. Plaintiffs alleged that Southern Life committed fraud in connection with its offer and purchase of PSC’s sole asset, a security, referred to as the Convertible Debenture.
"These laws are made to protect people who don’t have all the information that companies have," said Jerry Linscott, partner in the firm's Orlando office, "That's why these rules are in place. They were in place in 1934 when Congress said we need to protect the investing public, otherwise we can't have a system such as we have in the United States."
The jury, which agreed that Southern Life knowingly made omissions related to material facts and that they induced the Plaintiffs to rely and act on those omissions, awarded damages in the amount of $31.7 million. The Baker Hostetler team representing PSC included partners Linscott, Rob Thielhelm, Eric Golden, as well as associates Jorge Castillo and Michael Vitale.
About Baker Hostetler Founded over 90 years ago in 1916, Baker Hostetler is among the nation’s 100 largest law firms with 600 attorneys coast to coast. The firm has 10 offices nationwide: New York, Cincinnati, Cleveland, Columbus, Costa Mesa, Denver, Houston, Los Angeles, Orlando and Washington, D.C. Its five primary practice groups are Business, Employment, Intellectual Property, Litigation and Tax. For more information, visit the firm’s Web site at www.bakerlaw.com. # # #
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