Delaware Chancery Court Denies Motion to Dismiss and Upholds Complaint in EZCORP Lawsuit
Published January 28, 2016
Levi & Korsinsky LLP secured a significant victory on January 25, 2016, when Vice Chancellor J. Travis Laster of the Court of Chancery of the State of Delaware denied in part Defendants’ Motion to Dismiss in In re EZCORP Inc. Consulting Agreement Derivative Litigation
(C.A. No. 9962-VCL). A copy of the Memorandum Opinion is available here
The lawsuit seeks to recover damages associated with EZCORP’s improper and unlawful retention of outside managerial services from entities owned by the Company’s controlling stockholder, Phillip Ean Cohen. For years, Mr. Cohen has been profiting from these managerial services agreements at the expense of the Company and its common stockholders. Plaintiff’s Complaint alleges several claims against EZCORP’s Board of Directors and Mr. Cohen, including breach of fiduciary duty. Vice Chancellor Laster’s decision confirms the merit of Plaintiff’s allegations and allows the case to proceed to discovery. With this significant accomplishment, Levi & Korsinsky LLP will continue to dedicate its efforts towards the successful prosecution of this lawsuit.