Education Management Corporation obtains dismissal of wide-ranging fiduciary duty complaint against board of directors
Clients Education Management Corporation
Jones Day, as counsel to Education Management Corporation and acting in conjunction with counsel to the Special Litigation Committee and individual defendants, secured dismissal of a wide-ranging derivative case alleging numerous breaches of fiduciary duty by the board of Education Management Corporation. The case involved allegations surrounding a pending qui tam case against Education Management Corporation and the assertion that the directors breached their duty of care to the corporation in permitting various violations of law to occur. The court's opinions in the matter interpreted and applied Pennsylvania corporate governance law, and affirmed the wide discretion accorded litigation committees that recommend dismissal after a full investigation. The dismissal ended two-and-a-half years of litigation.
Oklahoma Law Enforcement Retirement System v. Nelson, Case no. GD12-008785 (Ct. C.P. Allegheny Cty., Pa.)