Sheppard secured unanimous jury verdicts for client De Tomaso Automobili, the legendary maker of iconic ultra-luxury sports cars, in an action brought by former Chief Executive Officer Ryan Berris.
In a 2023 federal action brought in the U.S. District Court of the Southern District of New York, Berris asserted a series of claims against De Tomaso, and its owner, Norman Choi. Berris alleged that he held an equity interest in the company, drove its revival and was forced out as part of an alleged fraudulent scheme. Berris claimed his complaint would “reverberate loudly across the world of limited edition, exclusive, multi-million-dollar supercars.”
After a six-day trial, the jury unanimously rejected Berris’s claim that De Tomaso breached any alleged oral compensation agreement that he contended entitled him to equity and other benefits, including one of the company’s bespoke limited edition supercars. The verdict confirms Berris did not own any equity in De Tomaso and had no contractual entitlement to the compensation he claimed.
The jury also rejected Berris’ claims that Choi engaged in fraudulent, dishonest or unjust action in connection with the purported oral agreement. The jury unanimously rejected Berris’s defamation claim based on statements that he entered contracts without board approval, incurred questionable expenses and was separated from the company for misconduct.
The jury found in favor of De Tomaso on its affirmative claims against Berris for breach of fiduciary duty and awarded damages. The jury found Berris breached the duty of loyalty by failing to put the company’s interests ahead of his own by taking actions that were not entirely fair to De Tomaso. The jury also found that Berris breached the duty of care by acting with reckless indifference or outside the bounds of reason, and that his actions were a substantial factor in causing harm to the company.
Lead counsel Paul Werner said, “The jury’s sound and commonsense verdict confirms what De Tomaso has said from day one: Berris’s misconduct seriously harmed the company. The verdicts finally set the record straight.”
The Sheppard trial team was led by Paul Werner, and included Imad Matini, Hannah Wigger, Angelo Pavone, Ryan D’Ercole, Ale Bustamante and Maggie Mollet.