A California federal judge granted U.S. Aerospace Inc. shareholders a victory in their litigation surrounding a boardroom takeover, agreeing with a magistrate judge’s ruling that the company’s advisers could not distance themselves from the actions taken by their attorney, Mark Vega.
According to the judge’s findings, the defendant could not distance themselves from the actions taken by their attorney, which include employing a strategy to delay discovery in the case by filing as many dispositive motions as possible. Because the defendants, who include USAE senior adviser Charles Arnold, chose Vega to represent them, they cannot avoid the consequences of his actions.
The court also found that the defendants were aware of their attorney’s misconduct even before the plaintiffs, who are comprised of various noteholders, filed a motion for sanctions in this case.
The plaintiffs sued the USAE, Arnold, and others in 2011, accusing the officers of the company with conspiring to artificially inflate the company’s stock price through several fraudulent offerings and bogus defense contract bids. That same year, named plaintiff David Defrees brought a shareholder derivative suit on behalf of public investors bringing the same allegations.
Call a Los Angeles Shareholder Fraud Attorney Today
If you invested with USAE, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles shareholder fraud attorney today for a consultation today.