Law360 Highlights Pryor Cashman Victory in Massachusetts Business Litigation
Pryor Cashman was spotlighted in a recent Law360 article, “3 Mass. Rulings You May Have Missed In February,” which highlighted the firm’s win for its clients, Alpaca VC Fund III LP and its executives, in the Suffolk County Superior Court’s Business Litigation Session.
As reported, the court dismissed with prejudice all claims not otherwise withdrawn in a lawsuit brought by the former CEO of BinStar Inc., who alleged 14 claims, including breaches of fiduciary duty, violations of the Massachusetts Paid Family and Medical Leave Act, securities law violations, unfair business practices, and claims sounding in fraud.
Applying Delaware law, the court held that directors’ fiduciary duties run to the corporation and its shareholders, not to individual officers, defeating one of the core claims. The court also ruled that the PFML statute does not apply to board members or investors, rejected multiple securities theories, and found that Chapter 93A does not extend to internal corporate disputes.
Law360 highlighted the decision because it reinforces key limits on executive claims against venture capital investors and clarifies the boundaries of fiduciary, employment, and consumer protection laws in internal governance disputes.
Pryor Cashman Partner Michael G. Goldberg, Co-Chair of the firm’s Fashion Group and a member of the Litigation and Intellectual Property Groups, and Counsel Lara Kasten Hoffman, a member of the firm's Litigation and Alternative Dispute Resolution Practices, represented Alpaca VC Fund III LP and its principals in securing the complete dismissal.
Learn more about this using the link below (subscription may be required).
