Meister v. Mensinger

The Meisters were preferred shareholders in Sesame, a now-dissolved software company. Mensinger was Sesame’s chief financial officer and Koppel was its chief executive officer. Sesame experienced financial difficulties, and its assets were sold to ExtraView, which was formed and owned by Mensinger. Sesame then dissolved, rendering the Meisters’ preferred shares valueless. The Meisters sued, alleging Mensinger and Koppel colluded to secure a preferential sale of Sesame’s assets and business to ExtraView, violating their fiduciary duties to the Meisters. The trial court found that Mensinger and Koppel had breached their fiduciary duties to the Meisters, but that the Meisters had failed to prove damages. The appeals court reversed, holding that the trial court erred in refusing to frame an appropriate remedy and in conducting an in camera post-trial review of ExtraView’s electronic financial records, rather than ordering an accounting of ExtraView’s net worth and profit/loss status,View "Meister v. Mensinger" on Justia Law