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DELOITTE LLP v. FLANAGAN

C.A. No. 4125-VCN.

DELOITTE LLP and DELOITTE & TOUCHE LLP, each a Delaware Limited Liability Partnership, Plaintiffs, v. THOMAS P. FLANAGAN, Defendant.

Court of Chancery of Delaware.

Decided: December 29, 2009.

Attorney(s) appearing for the Case

Paul J. Lockwood, Esquire of Skadden, Arps, Slate, Meagher & Flom LLP, Wilmington, Delaware, and Jay B. Kasner, Esquire and Joseph N. Sacca, Esquire of Skadden, Arps, Slate, Meagher & Flom LLP, New York, New York, Attorneys for Plaintiffs.

Philip A. Rovner, Esquire of Potter Anderson & Corroon LLP, Wilmington, Delaware, and J. Kevin McCall, Esquire, Chris C. Gair, Esquire, and Nicole A. Allen, Esquire of Jenner & Block LLP, Chicago, Illinois, Attorneys for Defendant.

MEMORANDUM OPINION

NOBLE, Vice Chancellor.

I. INTRODUCTION

A partner in an international accounting firm is accused by the partnership of trading in the securities of certain of the firm's clients, in contravention of his partnership agreement and of the general fiduciary duties he owed to his partners, and is further accused of fraudulently misrepresenting this trading activity in annual representations to the firm and within the firm's proprietary...

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