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Jury Award to Englewood Company to Total More Than $1 Million for Breach of Fiduciary Duties in Shareholder Class Action Case

2008-07-24 19:43:00

Jury Award to Englewood Company to Total More Than $1 Million for Breach of Fiduciary Duties in Shareholder Class Action Case

    ENGLEWOOD, Colo., July 24 /EMWNews/ -- An Arapahoe County District

Court jury awarded an Englewood-based public company what will likely

amount to more than $1 million in damages in the class action dispute

between the minority shareholders of Inverness-based Verex, Inc., a public

company, and a Fort Collins-based private company PR Pharmaceuticals, Inc.

The jury found that PR Pharmaceuticals and its President, Steven Howe, and

CEO, Dr. Patrick Bols, breached their fiduciary duties to Verex, Inc., and

its shareholders.

    The verdict for the class of minority shareholders is in favor of

approximately 1185 shareholders holding 1,195,470 shares. The court has

previously indicated that it may value those shares at $ .50/share for a

total value of $597,735. The jury awarded punitive dames against all of the

defendants and in favor of Verex, Inc. With this value, the verdict is

approximately $1.3 million. Prejudgment interest is substantial with this

case having been filed in 2003. Total damages including interest are

expected to bring the value of the verdict to over $2 million dollars.

    "We are, of course, delighted that after all of these years, our

clients have finally gotten this matter resolved," said Plaintiffs' trial

lead counsel David P. Hersh of Burg Simpson Eldredge Hersh & Jardine, P.C.

Hersh added, "The Defendants never acknowledged their wrongdoing, and so it

is particularly gratifying to receive the jury's determination that the

Defendants not only breached their fiduciary duties, but did so willfully

and wantonly, justifying an award of punitive damages."

    The jury found that the former majority shareholders violated their

respective fiduciary duties for the benefit of themselves and to the

detriment of the present company shareholders.

    "It's good to win vindication for the little guys -- this is what we

practice law for -- to fight injustice, even against big companies at great

odds," said Plaintiffs' trial counsel David K. TeSelle.

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