A St. Louis County jury awarded $55.4 million to the plaintiffs in a shareholder derivative suit.

Case Summary

A St. Louis County jury awarded $55.4 million to the plaintiffs in a shareholder derivative suit after Simon Law attorneys proved that company directors and the controlling shareholder, which included descendants of the Anheuser family, breached fundamental fiduciary duties. The two-week trial happened in St. Louis County with jurors who deliberated for five hours before returning their verdict, which included $24.4 million in compensatory damages. The jury deliberated for about another hour before delivering $31 million in punitive damages.

Key Highlights

• Simon Law’s clients were shareholders in a company called InnerPoint Energy Corporation.
• InnerPoint’s original purpose was to develop and produce renewable and clean energy locally.
• InnerPoint was a Delaware corporation and was registered to do business in Missouri.

Business Litigation Lawsuit: Case Analysis

One of Simon Law’s clients was the original founder of InnerPoint; his innovations led to more than 30 patents associated with renewable and clean energy technology.
Simon Law attorneys proved that company executives and board members – some of whom are fifth-generation descendants of Eberhard Anheuser – not only withheld substantial information from shareholders but also engaged in transactions designed to benefits themselves at the expense of the shareholders.

After the enactment of a new law in Michigan, a plant owned by Innerpoint became exponentially more valuable there. The defendants transferred InnerPoint’s assets to themselves, without ever having the company appraised, leaving the investors with nothing.
A few months after receiving the devastating news about their investments, shareholders saw news coverage of the defendants at a groundbreaking ceremony on a project for the same company they were just told was worthless with the same executives holding the shovels.

Business Litigation Lawsuit Outcome & Impact

By withholding key information and presenting a false narrative, the defendants in this case colluded to deprive our Simon Law’s clients of the company they owned – right at the moment the company suddenly had a bright future. That is not how companies should be allowed to operate, and this jury saw through the defendants’ attempts to avoid accountability.

Defendant Glenn Foy served as the CEO, President, and Secretary of InnerPoint Energy, as well as a member of the Company’s Board of Directors.

Defendant Dennis Moore was a member of the Board of Directors of InnerPoint Energy, and the Moore Family Trusts were a controlling shareholder of the company.

The punitive damages verdict was split as follows: Glenn Foy; $75,000, Dennis Moore $2.5 million and Moore Family Trustees $28.4 million.

Additional Case Information

For additional information, contact Simon Law lead attorney Tony Simon or Simon Law attorney Jer Nixon.