Bridgeport holdings inc liquidating trust new century liquidating trust agreement
I find no cognizable claim that any of the directors of Radio Shack, including Magnacca, breached his or her duty of loyalty.
It is possible that the directors may have breached their duty of care.
That is because if there is no satisfactory answer, it suggests that the duty at issue is not loyalty, but care.
(AC ¶ 33) Because of that refusal, in April 2014 the directors expanded the scope of PJSC's engagement by directing it to follow a parallel path of raising capital or pursuing a sale transaction.
It also alleges that Radio Shack's independent directors were fully aware of Magnacca's conflicted loyalties and yet permitted him to pursue his personal agenda, knowing that it likely would spell disaster for the company.
In this case, the plaintiff, a trust created for the benefit of Radio Shack's creditors, alleges that chief executive officer and director Joseph Magnacca engineered a transaction that delivered Radio Shack into the hands of Standard General, its largest shareholder, in order to further Magnacca's personal ambitions.
(AC ¶ 23) Based in Fort Worth, Texas, it operated more than 4,100 stores throughout the United States.
(Id.) On February 5, 2015, Radio Shack filed for voluntary relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.