WALLESS Prevailed in an Unprecedented Court of Appeal Director Liability Case
WALLESS represented a client in a complex damages case against the former CEO of the company. The Court of Appeal decided that the director was liable for EUR 5,5 M in damages caused by the unlawful transfer of a profitable company’s hotel business to a third party. The court dismissed allegations of the respondent that such transfer was necessary to protect the company’s assets from creditors that threatened the existence and continuation of the company’s business.
This is a significant case and one of the largest awards of damages in the modern Lithuanian legal history in such a category of cases. This decision will also be the base for future director liability cases and will influence the legal practice in this area.