Last week, a federal Jury in Fort Worth, Texas, found executives of Latitude Solutions, Inc. (LSI), guilty of breaching their fiduciary responsibility to the water remediation company. The executives’ actions reflect what’s known as a “pump-and-dump” scheme, which essentially drains a company of its funds.
LSI, a publicly-traded company produced water remediation units to clean waste water near oil wells and fracking sites.
J.E. Cullens, a name partner at Baton Rouge, Louisiana-based Walters, Papillon, Thomas, Cullens, LLC, was lead counsel in the case, representing the bankruptcy trustee, hired after Latitude went bankrupt in 2012. After a one-week trial, the jury awarded $13.4 million in compensatory damages and $8 million in punitive damages.
Among the LSI executives was John Paul DeJoria, a prominent entrepreneur. DeJoria is the founder of Patron Spirits Company and also of the popular hair care company John Paul Mitchell and has guest starred as a panelist on ABC’s “Shark Tank.” According to Forbes, the 73-year-old is worth nearly $3 billion.
Click here to learn more about the case, Ebert v. Appel, et al., No. 4:15-cv-225-O (U.S., N.D. Tx—Fort Worth).