Lost Business Income
A minority shareholder sued the majority owner of two corporations that operate skilled nursing facilities, both individually and derivatively, claiming the majority shareholder breached its fiduciary duties. Bruce L. Ross & Company performed an extensive review of the books and records of the companies, focusing on the actual and should-have-been salaries and expenses of each one. Then it calculated damages, including excess salary paid to the majority shareholder, expenses incurred in the formation of a third company for the purpose of assuming the financial and management functions of the two existing companies, consulting fees and expenses paid to a third party and other self-dealing by the majority shareholder. The judge awarded damages consistent with Mr. Ross’s testimony.