
Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comFirm News
Author: Dan Brecher
Date: January 22, 2025
Counsel
212-286-0747 dbrecher@sh-law.comNew York, NY – January 22, 2025 – Scarinci & Hollenbeck, LLC is proud to announce that Dan Brecher, Chair of the firm’s Securities and Investment Banking Group, achieved a significant appellate victory on behalf of the firm’s client, reaffirming the firm’s prowess in appellate litigation and claims involving fraud.
The New York Supreme Court’s Appellate Division, First Department, issued a unanimous decision by a five-judge panel reversing the lower court’s dismissal of a key claim brought derivatively by shareholders against their corporation’s accountants. The claim, centered on a breach of the covenant of good faith and fair dealing that is implicit in all New York contracts, will now proceed to trial.
In 2020, the lower court dismissed ten causes of action in this case. Thanks to Mr. Brecher’s advocacy, the majority of those dismissed claims have now been restored. The case will move forward against defendants accused of embezzling, and aiding the embezzlement of, corporate funds and professional malpractice.
“This decision underscores the importance of holding fiduciaries accountable for their actions,” said Dan Brecher. “We are pleased that the appellate court recognized the merits of our arguments and reinstated this critical claim against professionals who aided and hid the fraudulent transactions. The courts tend to be protective of professionals charged with malpractice, but we were able to show the Court that these accountants hid the embezzlement from the shareholder plaintiffs for years by distributing false reports about the corporation’s assets.” The case is Jobar Holding Corporation, et al. v. Barbara Halio, et al., Case No. 2021-01048.
This success is a testament to Scarinci & Hollenbeck, LLC’s unwavering dedication to pursuing justice for its clients.
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