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New York State Supreme Court Dismisses Case Against Kohlberg Capital
Practices
On October 19, New York State Supreme Court Justice Melvin Schweitzer issued a decision dismissing shareholder derivative claims brought against Paul, Weiss client Kohlberg Capital Corporation (KCAP).
Plaintiff Michael Bohigian claimed that KCAP's board of directors harmed the company by improperly valuing its illiquid investments, requiring KCAP to restate its financial statements for year-end 2008 and for the first two quarters of 2009.
Justice Schweitzer's 29-page decision rejects each of plaintiff's many attempts to explain his failure to make a demand on KCAP's board before filing suit, dismisses the complaint, and gives plaintiff 45 days in which to move for permission to amend his complaint.
Paul, Weiss partner Dan Kramer argued the motion before Justice Schweitzer on October 6. Other members of the Paul, Weiss team included, among others, partner Les Fagen.