Trading Co. Board Members Escape Suit Over CEO's Actions

Law360 (April 15, 2019, 5:21 PM EDT) -- Former executives of a now-defunct online stock trading company won’t have to face claims brought by shareholders alleging they lied about the company’s financial condition and failed to prevent gross fiscal mismanagement by its CEO, an Illinois federal judge ruled Friday.

U.S. District Judge Matthew F. Kennelly found that two former board members of Ditto Holdings, Inc., now called SoVesTech Inc., may have dropped the ball when the company’s CEO, Joseph Fox, used corporate funds for personal gain — but the shareholders had failed to show evidence they acted in bad faith.

Xvi Feiner, who joined Ditto’s board of directors in...

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Case Title

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Case Number

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Court

Illinois Northern

Nature of Suit

Securities/Commodities

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Date Filed

January 11, 2017

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