Rosenberg Fortuna Filosa & Laitman LLP attorneys Anthony R. Filosa, Esq., Brett D. Zinner, Esq. and Arthur S. Laitman, Esq. secured a decisive trial victory for an executive in a complex commercial dispute involving executive compensation, breach of contract, corporate governance, fiduciary duties, fraudulent concealment, and the faithless-servant doctrine.
Following a five-day jury trial in the United States District Court for the Southern District of New York, the jury returned a verdict in favor of the firm’s client, Andrew Q. Kraft, on his breach-of-contract claim against The Arena Group Holdings, Inc. The jury awarded Kraft $1,105,269, consisting of $1 million in contractual severance compensation, reimbursement of COBRA expenses, and unpaid quarterly bonuses.
The verdict represented a complete victory not only on Kraft’s affirmative claim, but also in defending against the company’s counterclaims. The jury rejected claims that Kraft had breached his fiduciary duty, acted as a faithless servant, engaged in fraud or fraudulent concealment, or received compensation as the result of a mutual mistake. The resulting judgment dismissed each counterclaim on the merits.
The Court’s judgment further awarded Kraft statutory prejudgment interest, post-judgment interest, and taxable costs, while retaining jurisdiction to determine his application for reasonable attorneys’ fees
The result reflects the firm’s ability to manage and try sophisticated commercial cases in which contractual rights intersect with executive compensation arrangements, corporate approval procedures, fiduciary-duty allegations, fraud claims, and other business torts.
The matter is Andrew Q. Kraft v. The Arena Group Holdings Inc. and Manoj Bhargava, No. 24-cv-02619-LJL, in the United States District Court for the Southern District of New York.
Prior results do not guarantee a similar outcome.