News & Analysis as of

Nonprofits Breach of Duty

BakerHostetler

AD-ttorneys@law - January 2024

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Extra, Extra, Read All About It! We have a major update! If you’re a subscriber to our blog, you have likely caught wind of our recent rebrand to ADventures in Law. Overflowing with a dynamic mix of weekly blogs, engaging...more

Nilan Johnson Lewis PA

Otto Bremer Trust Decision Offers Insights for Foundation Trustees

On Friday, April 29, 2022, Ramsey County District Court Judge Awsumb issued a decision in the highly publicized case brought by the Minnesota Attorney General’s Office seeking removal of the three Otto Bremer Trust Trustees....more

Cozen O'Connor

AG Bonta Fines Nonprofit for Misdirected Donations

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California AG Rob Bonta reached a settlement with defunct San Francisco nonprofit ZeroDivide and its directors and officers (collectively, “ZeroDivide”) to resolve allegations that it misspent donations in violation of...more

Cozen O'Connor

AG Bonta Fines Nonprofit for Misdirected Donations

Cozen O'Connor on

California AG Rob Bonta reached a settlement with defunct San Francisco nonprofit ZeroDivide and its directors and officers (collectively, “ZeroDivide”) to resolve allegations that it misspent donations in violation of...more

Farrell Fritz, P.C.

Another Door Closes to Federal Court in Judicial Dissolution Cases

Farrell Fritz, P.C. on

Not for the first time, I find myself intrigued by the federal courts’ resistance to hearing state law claims for judicial dissolution of business entities where subject matter jurisdiction otherwise exists based on diversity...more

Winstead PC

Federal District Court Holds That A Former Director Of Nonprofit Did Not Have Standing To Sue For The Board’s Breach Of Fiduciary...

Winstead PC on

In Garcia v. Communities in Schools of Brazoria County, a director sued a nonprofit’s board for breach of fiduciary duty arising from his removal. 2019 U.S. Dist. LEXIS 97017 (S. D. Tex. June 10, 2019)....more

McDermott Will & Emery

Corporate Law & Governance Update - April 2019

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DIRECTORS AS VENDORS - A new controversy at a large health system highlights the legal and reputational challenges that can arise when directors sell services to the organizations they serve as fiduciaries. According to...more

Poyner Spruill LLP

Recent Decision Highlights Potential Personal Liability of Hospital Directors Based on Breach of Fiduciary Duty

Poyner Spruill LLP on

In a recent case, a federal bankruptcy court in Michigan reviewed important questions involving breach of fiduciary duty and the application of the business judgment rule to both management and volunteer board members of a...more

Pillsbury Winthrop Shaw Pittman LLP

Developments in Association Law, 2016 – 2017

There have been important legal developments at the federal and state levels for nonprofit organizations. - Takeaways - Nonprofits continue to experience Federal government and private litigant antitrust enforcement. ...more

Skadden, Arps, Slate, Meagher & Flom LLP

Supreme Court 2016-17 Recap

The politics surrounding the appointment of a new justice to the U.S. Supreme Court dominated the news cycle during the 2016-17 term, but the Court’s decisions themselves have been far from controversial. As the term draws to...more

McDermott Will & Emery

Corporate Law & Governance Update - August 2016

The Hershey Governance Settlement - On Friday, July 29, the Pennsylvania Attorney General, the Hershey Trust Company and the Milton Hershey School, entered into a written settlement resolving an investigation conducted...more

BakerHostetler

Volunteer Directors and Officers Liable to Facility Creditors

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The Third Circuit Court of Appeals recently upheld a trial court’s jury verdict finding the individual board members and officers of a non-profit healthcare facility personally liable to the facility’s creditors. The board...more

Cadwalader, Wickersham & Taft LLP

Federal Appellate Court Ruling Sounds the Liability Alarm for Officers and Directors of Struggling Health Care Providers – Both...

Last month, the United States Court of Appeals for the Third Circuit issued an important, 28-page opinion that confirmed a jury verdict, holding former officers and directors of a not-for-profit health care provider in...more

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