Shareholder Derivative Suit Over Short-Swing Profits Sent Back To District Court

Mealey's (November 24, 2020, 2:05 PM EST) -- NEW YORK — Factual questions exist on the issue of a 1-800-Flowers’ shareholder’s beneficial ownership of the company’s stock and whether it was subject to liability under federal securities law and, in particular, disgorgement of short-swing profits, a Second Circuit U.S. Court of Appeals panel ruled Nov. 23 in remanding a shareholder derivative lawsuit to federal district court (Brad Packer v. Raging Capital Management LLC, et al., Nos. 19-2703 and 19-2852, 2nd Cir., 2020 U.S. App. LEXIS 36748)....