In a published opinion, the California Court of Appeal, 4th Appellate District, upheld a jury award of over $400,000 in favor of Eanet, PC client, IIG Wireless, Inc. In the lawsuit, IIG Wireless, Inc. alleged that Yi, its former CEO and Chairman of the Board, fraudulently obtained shares of stock that were reserved for the company’s other employees, and that he breached his fiduciary duties owed to the company. Eanet, PC attorneys Matthew Eanet and Laine Mervis handled the trial as well as the appeal. The Court of Appeals held that the parol evidence rule did not bar the admission of oral promises which contradicted a written shareholder agreement to prove fraud, following Riverisland Cold Storage v. Fresno-Madera Production Credit Assn. (2013) 55 Cal.4th 1169. More information is available here.
The decision in IIG v. Yi has received substantial coverage from various blogs and professional associations, including the California Lawyers Association for its importance in expanding upon the application of the Riverisland decision and fighting fraud. Here are a few: