1st Circ. Sides With Former WMI Chair In Equity Spat

Law360, New York (October 20, 2009, 3:11 PM EDT) -- A federal appeals court has upheld a lower court's finding that six board members and founders of WahlcoMetroflex Inc. breached their fiduciary duty to a fellow founder and former board chairman in an issuance of equity shares to raise money for the emissions-control equipment manufacturer.

The U.S. Court of Appeals for the First Circuit denied the appeal and cross-appeal on Monday, affirming the Maine District Court's November 2008 decision that the directors exercised due care in completing the first of two issuances when the company was...
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