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RESNIK v SILVERMAN Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 18,329, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: RESNIK, State: DE Delaware, UniqueCaseRef: DE>CC>00018329, Cendant, Hfs, Class Action, Settlement, Delaware, Del, Silverman, Complaint, Corporate Assets, Hfs Defendants, Derivative Action, Settlement Agreement, Deutch, Merger, York, Breach, Jersey, Robert, Derivative Action Litig, Fiduciary Duty, Misleading, Leonard Schutzman, Liability, Class Action Settlement, Registration Statement, Financial Statements, Nederlander, Directors, Cuc, Review, Omitted Material Information, United States, Securities Class Action, District, Supp, Ripe, Rulings , ContentID: 120240142

Case Documents
1 2000-11-16 MEMORANDUM OF LAW IN SUPPORT OF CENDANTS MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 102306
18 pages
PDF
2 2000-11-16 BRIEF IN SUPPORT OF THE HFS DEFENDANTS MOTION TO STAY
[ see first page and extracted highlights below  ] ItemID: 102305
26 pages
PDF
3 2000-09 DERIVATIVE COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 100875
24 pages
PDF
Total Documents: 3 documents , 68 pages
Price: $ 29.95


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1 . MEMORANDUM OF LAW IN SUPPORT OF CENDANTS MOTION TO DISMISS

EXTRACTED KEY WORDS
COURT
DEL
DERIVATIVE ACTION
SETTLEMENT AGREEMENT
DELAWARE
DERIVATIVE ACTION LITIG
PLAINTIFF
REVIEW
SUPP
RIPE
FACTS
CLASS ACTION
APPEALS
COMPLAINT
SUPER
NOMINAL DEFENDANT CENDANT
DIRECTORS
PREMATURE
SETTLEMENT AMOUNT
JERSEY DISTRICT
SECURITIES
OBLIGATION
PENDING CLASS ACTION
APPROVING
HFS
LEONARD
PRELIMINARY STATEMENT
SCD
RESOLUTION
        IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                           IN AND FOR NEW CASTLE COUNT'r'

HERBERT RESNIK, derivatively on behalf of         :
CENDANT CORPORATION,

                               Plaintiff,

              V .                                 :      Civil Ac:ion No. 18329

HENRY R. SILVERMAN, JAMES E.
BUCKMAN, MARTIN EDELMAN, LEONARD :
S. COLESMAN, STEPHEN P. HOLMES, BRIAN :
MULRONEY, ROBERT E. NEDERLANDER,                  :
ROBERT W. PITTMAN, ROBERT F. SMITH,               :
MICHAEL P. MONACO, :LEONARD
SCHUTZMAN, JOHN SNIODGRASS,  and
R.OBERT D. KUNtSCH,

                               Defendants,

              -and-

C'ENDANT CORPORATION,
a Delaware corporation,

                               Nominal Defendant. :





                                                       Edward P. Welch
                                                       SKADDEN, ARPS, SLATE,
                                                        MEAGHE:R  & FLOM
                                                       One Rodney Square
                                                       Wilmington, Delaware 19801
                                                       (302) 65 l-3000
                                                       Attorneys f br Nominal Defendant
DATED: November  16,200O                                Cendant Corporation



                                             :!QiBLE OF CONTENTS


Table of Cases and Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . .             

SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • MICHAEL P. MONACO,:LEONARD
  • Preliminary Statement
  • STATEZMENT OF FACTS
  • Bsown v. Weiler, Del.
  • In re Cendant Corp. Derivative Action Litig.,
  • F. Supp.
  • Super., 564 A.2d 68'1.
  • Chancery Court Rule 12, dismissing plaintiffs complaint.
  • Plaintiff Herbert IResnik brings this derivative act ion to challenge the
  • decision of Cendant's Board of Directors to enter into an agreement settling a consolidated
  • Elistrict Court for the District of New Jersey ("New Jersey District Court").
  • n'ot ripe for judicial review.
  • Under the Settlement Agreement, Cendant has nc' obligation to make
  • appealed from the decisions approving the Settlement Agreement and plan of allocation.
  • These appeals remain in their preliminary stages and may, of course, ultimately result in
  • does not currently `exist and may never occur at all, plaintiffs action is premature
  • Nominal defendant Cendant is a Delaware corpor,ation with its principal
  • The "HFS Director Defendants" are 9 current and 4 former members of the
  • Board of Directors of Cendant.
  • certain of its officers and directors alleging violations of the fedleral securities laws.
  • provides that Cendant is not obligated to pay the settlement amount until 120 days after
  • in a prompt resolution of the question presented; the hardship that further delay might
  • d:,unage:s is, obviously, comingent upon the outcome of the pending class action" and the
  • SCD, slip op.

  • 2 . BRIEF IN SUPPORT OF THE HFS DEFENDANTS MOTION TO STAY

    EXTRACTED KEY WORDS
    DELAWARE
    COURT
    HFS DEFENDANTS
    PLAINTIFFS
    DEUTCH
    YORK
    CLASS ACTION
    JERSEY
    ROBERT
    CLASS ACTION SETTLEMENT
    COUNSEL
    DEL
    DISTRICT
    RULINGS
    CENDANT CORPORATION
    DELAWARE AVENUE
    DIRECTORS
    COMPLAINT
    LEONARD SCHUTZMAN
    JOHN SNODGRASS
    FIDUCIARY DUTY
    FORUM SHOPPING
    JUDGE WALLS
    FORMER DIRECTORS
    NEDERLANDER
    SUMMARY JUDGMENT
    SHAREHOLDERS
    BARTLETT FRIEDLANDER
    WILMINGTON
    
                        IN THE COUR'I OF ICHANCERY  OF THE STATE OF DELAWARE
                                             IN AND FOR NEW CASTLE COUNTY
    
    
    ____._..____________~__~-__-_.--_..--___.______.______  - ____-_-_-____  x
    
    HERBERT RESNIK, derivatively on behalf of
    CENDANT CORPORATION,
    
                                                                   Plaintiff,  '
    
                              V.
    
    HENRY R. SILVERMAN, JAMES E. BUCKMAN,                                          :
    MARTIN EDELMAN,  LEONARD S. COLEMAN,                                           : Civil Action No.
    STEPHEN P. HOLMES, BRLAN MULRONEY,
    ROBERT E.  NEDERLANDEZR.,  ROBERT W.
    PITTMAN,  ROBERT F. SMITH, MICHAEL P.
    MONACO, LEONARD SCHUTZMAN,  JOHN
    SNCDGRASS,  and ROBERT 13). KUVISCH,
    
                                                              Defendants.  :
    
                              -and-
    
    CENDANT`  CORPORATION, a Delaware
    corporation,
    
                                                   Nominal Defendant. :
    
    
    
                                    BRIEF IN !;ilJPPORT  OF THE HFS DEFENDANTS
                                                MOTION TO STAY THE ACTION
    
    OF COUNSEL:                                                                   BOUCHARI?  MARGULES  &
    SIMPSON THACHER & BARTLETT FRIEDLANDER, P.A.
    425 Lexington Avenue 222 Delaware Avenue, Suite 1102
    New York, New York: 10017 Wilmington, 3elaware 1980 1
    (21'2)455-2000                                                                (302)573-3500
    
                                                                                  Attorneys for
    
    STERN 6' GREENBERG                                                            Henry R. Silverman,
    75 Li.vingston  Avenue                                                        Martin  Edelman, 
    Roseland, New Jersey 07068                                                    Stephen P. Holmes,
    (973) 535;-1900                                                               Robert E.
                                                                                  Robert F.  Sn.ith, 
                                                                                  Leonard Sch~&zrnan,
    
    SNIPPETS:
  • IN THE COUR'I OF ICHANCERY OF THE STATE OF DELAWARE
  • SIMPSON THACHER & BARTLETT FRIEDLANDER, P.A. 425 Lexington Avenue 222 Delaware Avenue, Suite
  • New York, New York: 10017 Wilmington, 3elaware 1980 1
  • The Deutch Action Was First Filed.
  • The District Of New Jersey Is Capable Of Doing
  • The Court Should Reject This Transparent And Duplicitous
  • No. 15060, 1996 WL 684376 (Del.
  • In re Cendant Corp. Deriv.
  • Coleman, L3tephen P. Holmes, Brian Mulroney, Robert E. Nederlander, Robert W. Pittman,
  • Robert F. Smith, Mich.ael P. Monaco, Leonard Schutzman, John Snodgrass and Robert D.
  • Plaintiff commenced this derivative action on behalf of Cendant Corporation
  • against thirteen present and former directors of Cendant for breach of fiduciary duty
  • this action is nothing more than a cynical attempt at forum shopping
  • the derivative plaintiffs in both actions are represented by the same counsel.
  • damaged by the actions of the HFS Defendants when significant al:counting irregularities at
  • the Court likewise reject plaintiff's counsel's attempt to evade the rulings of the New Jersey
  • Complaint 7 23.
  • securities class action lawsuits.

  • 3 . DERIVATIVE COMPLAINT

    EXTRACTED KEY WORDS
    HFS
    CLASS ACTION
    CENDANT
    SETTLEMENT
    SILVERMAN
    CORPORATE ASSETS
    PLAINTIFFS
    COMPLAINT
    MERGER
    COURT
    BREACH
    MISLEADING
    LIABILITY
    REGISTRATION STATEMENT
    FINANCIAL STATEMENTS
    CUC
    OMITTED MATERIAL INFORMATION
    UNITED STATES
    FIDUCIARY DUTY
    SECURITIES CLASS ACTION
    BRIAN MULRONEY
    NEDERLANDER
    LEONARD SCHUTZMAN
    CONTAINED FALSE
    MERGER AGREEMENT
    UTILIZED CORPORATE ASSETS
    PERSONAL BENEFIT
    CENDANT PUBLIC FILINGS
    FELLOW HFS
    
                    IN THE COURT OF CHANCERY OF  THE STATE OF DELAWARE
                                       IN AND FOR NEW CASTLE COUNTY
    
    --""""""-""-"--"-""--"--""~"""""~""~"""-""~""~~""~"""""~"""~"""~"""~""~~
    HERBERT RESNIK, derivatively on behalf of
    CENDANT CORPORATION,
    
                                                     Plaintiff,
    
              -against-
                                                                                : Civil Action No. 
    HENRY R. SILVERMAN, JAMES E.  BUCKMAN,
    MARTIN EDELMAN, LEONARD S. COLEMAN,
    STEPHEN P. HOLMES, BRIAN MULRONEY,
    ROBERT E. NEDERLANDER, ROBERT W.
    PITTMAN,  ROBERT F. SMITH, MICHAEL
    P. MONACO, LEONARD SCHUTZMAN,
    JOHN SNODGRASS, and ROBERT D. KUNISCH,
    
                                                     Defendants.
    
              -and-
    
    CENDANT CORPORATION,
    a Delaware corporation,
    
                                                     Nominal Defendant.
    ""--"-"""-""-""--""-""--""-""----------"--""--""-"""--""~-""-"""~~"-.~
    
    
    
                                               DERIVATIVE COMPLAINT
    
              Plaintiff, as and for his Derivative Complaint (the "Complaint"), by his attorneys,
    
    alleges upon personal knowledge as to himself and his own acts and upon information and
    
    belief as to all other matters as follows:
    
                                                     1. 1NTRODUC;TION
    
              1.        This derivative action seeks recovery on behalf of Cendant Corporation
    
    ("Cendant" or the "Company") from the HFS Director Defendants (as defined below) for
    
    breach of fiduciary duty and waste of corporate assets. The HFS Director Defendants caused
    
    Cendant to wrongfully enter an unfair settlement (the "Settlement") in a securities class action
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • CENDANT CORPORATION,
  • Plaintiff, as and for his Derivative Complaint, by his attorneys,
  • breach of fiduciary duty and waste of corporate assets.
  • The HFS Director Defendants caused
  • Cendant to wrongfully enter an unfair settlement in a securities class action
  • This conduct constituted a breach of the HFS Director
  • 1997 Registration Statement and joint Proxy/Prospectus (the "Registration
  • Statement"), HFS Inc. merged into CUC on December 18, 1997.
  • Merger, Chairman of the Board of Directors and Chief Executive Officer of HFS.
  • Since .July 28, 1998, Silverman has also been
  • Cendant public filings) which contained false and misleading statements and/or omitted
  • as a defendant in the Class Action and faced enormous personal liability under Section 11 of
  • Defendant Silverman utilized corporate assets for personal benefit by causing the
  • to the release of the claims made against him and fellow HFS Director Defendslnts in the Class
  • and/or omitted material information necessary to make such statements not misleading.
  • Defendant Brian Mulroney has been a member of the Company's
  • Defendant Robert E. Nederlander has been a member of the
  • Defendant Leonard Schutzman has been a member of the
  • filed in the United States District Court for the District of New Jersey as In re Cendant
  • reference) were materially false and misleading and contained financial statements not
  • The Class Action plaintiffs alleged that each of these
  • Merger Agreement between HFS and CUC, dated May 27, 1997, that was included therein,
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