Etrade Derivative Litigation
Mr. Weiser was co-lead counsel in the Etrade Derivative Litigation. Mr. Weiser believes that the Etrade Derivative Litigation is one of the most successful executive compensation cases ever brought against a publicly traded corporation’s board of directors. In that case, the plaintiff challenged the payment of excessive compensation awarded to Etrade’s then-current Chief Executive Officer. As a result of the settlement of the case, Etrade’s Chief Executive Officer returned approximately $25 million to the Company, and he also agreed to forego other valuable financial benefits. The Etrade settlement also provided for sweeping changes to the company’s corporate governance practices and the structure of its Board. These measures, and the resulting change in the public’s perception of Etrade, were profiled in a September 8, 2003 Wall Street Journal article entitled “How One Firm Uses Strict Governance To Fix Its Troubles.” Since the time of the Etrade settlement, Etrade has added independent directors to its Board, who have since forced out the company’s Chief Executive Officer. In response to these changes, the Company’s stock increased more than 300% in the 18 months following the settlement and the “new” Etrade has been the subject of several positive media reports.
Barry v. Cotsakos, CV 49084 (San Mateo County, CA) (the “Etrade Derivative Litigation”)