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GMT Wins Critical Motion in Teledesic Derivative Action
GMT filed a derivative lawsuit, on behalf of David Montanaro
and all Teledesic shareholders, in King County Superior Court. Defendants
filed a motion to dismiss, asserting that the plaintiff was required
to make a demand on the Teledesic Board of Directors that it investigate
the allegations contained in the complaint.
GMT partner Jeff Tilden argued on behalf of Montanaro that demand
was excused as futile -- either because the Teledesic Board lacked
the independence to assess allegations regarding corporate waste and
breach of fiduciary responsibility, or, because the transactions outlined
in the complaint had no appropriate business purposes.
On October 29, 2001 the Court denied defendants' motion. The case
will now proceed to discovery.
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