Business Fraud & Fiduciary Duty Case: WG Secures Major Verdict in Jury Trial Win
After a two-week jury trial in Orange County, WG’s litigation team, led by Shahrokh Sheik, secured a significant victory for its client in Long v. Glyder LLC, a case about fiduciary accountability and the consequences of rampant concealment and self-dealing inside a company. The jury returned broad liability findings in our client’s favor and awarded more than $2.95 million in combined compensatory and punitive damages, including $1.25 million in punitive damages.
The Verdict
The jury found for our client, the Plaintiff, on all claims including fraud, breach of fiduciary duty, breach of contract and conversion, followed by a separate punitive damages award. This was not a mere bookkeeping dispute or failed business venture. It was about whether a managing member can quietly treat company assets and company structures as his own.
At trial, the evidence centered on a stark contrast. Our client invested hundreds of thousands into the business and expected to share in its upside. Over time, however, the evidence showed substantial concealment and self-dealing including without limitation funneling funds into retirement plans and other benefits.
A hard-fought case from start to finish
This result followed years of hard-fought litigation including extensive motion practice including successful motions for rampant discovery abuse and concealment. We undertook targeted discovery and developed extensive expert witness evidence support including experts testifying at trial on defined benefit plans, business tax and accounting, and LLC member manager dealings. Just as critical to the evidence we sought to admit at trial was the evidence we sought to exclude- namely, defendants anticipated core defensive arguments. Through over a dozen motions in limine, including ones raised at trial, we succeeded in preventing Defendants from admitting any of their experts and various core arguments. In the end, the case was built through persistence, disciplined strategy, and constant pivoting and pressing until the full picture emerged.
Why this win matters to business owners and investors
Closely held company disputes are often among the most difficult cases to litigate well. Our client is a clothing manufacturer with factories in Asia and Africa, and this lawsuit involved claims against his US partner / importer. Like many such disputes, here, the key evidence was buried in internal records, financial entries, tax documents, payroll structures, and benefit plans. The people with the best access to the truth are often the very people accused of misconduct.
That is why these cases demand more than broad accusations. They require targeted discovery, forensic attention to financial detail, and a trial strategy that can convert years of messy records into a narrative a jury can understand and trust.
Our goal was to get the jury to understand that when one business partner controls the books, the flow of information, and the company’s financial machinery, the duty to act fairly and transparently is not optional.
The WG approach
Congratulations to our trial team for securing a significant result after years of hard-fought litigation. We believe strategy, targeted discovery and trial readiness are often what separate a difficult case from a winning one.