One aspect of our work that we particularly value is its ability to promote lasting governance change. In keeping with this, KM has long been a pioneer in litigating shareholder derivative and corporate governance claims. Our focus on this space dates back to 1988, when KM was responsible for a substantial recovery for shareholders in connection with the Kohlberg Kravis Roberts & Co. takeover of RJR Nabisco that inspired
Barbarians at the Gate. In that case, in a matter of first impression, KM established that investment bankers advising target boards have duties running directly to shareholders of those companies.
When management fails to take the steps necessary to protect the interests of the company and its shareholders through mismanagement, wasting of corporate assets, or self-dealing, shareholders have a right to hold officers and directors liable. In these cases, shareholders often do not
seek monetary damages, but rather seek to protect their long-term investment in the company by imposing corporate governance and management reforms which ensure that corporate structures, internal controls, and policies are consistent with the law and best practice. The goal of such litigation is to preserve corporate assets, improve transparency, and restore accountability.
Today, KM continues to routinely work with clients to bring derivative lawsuits and advance corporate governance agendas during class action settlement processes.
