San Diego Union Tribune Reports Settlement of Kratos Derivative Suit —Robbins Umeda’s* Role as Co-Lead Counsel Noted
On May 4, 2010, the San Diego Union Tribune reported the settlement of the six-year-old derivative suit filed by Robbins Umeda LLP against Kratos’s company executives. According to the article, the executives and the company, formerly known as Wireless Facilities, were accused of breaching their fiduciary duty by improperly accounting for foreign taxes and by backdating stock options. The article noted that since the filing of the suit, the company has brought in new management, changed its name to Kratos and sold off its wireless assets to focus on defense contracts. Under the terms of the settlement, at least 50,000 stock options, and potentially as many as 90,000, were forfeited back to the company. Kratos also agreed to adopt a wide range of improved corporate governance procedures.
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* The firm name changed from Robbins Umeda LLP to Robbins Arroyo LLP on January 1, 2013.