WORLDMARK DERIVATIVE LAWSUIT- DIRECTORS’ SETTLEMENT

Case Background and Settlement Announcement

In 2007, Girard Gibbs represented five WorldMark Owners in filing a derivative lawsuit (a lawsuit brought by a shareholder on behalf of a corporation) against former and current WorldMark directors. The lawsuit was brought on behalf of WorldMark and all other WorldMark members (or “Owners”), alleging that these directors breached their fiduciary duties to WorldMark and to the Owners by taking actions that benefit the developer, Wyndham Resort Development Corporation, rather than Owners themselves. The complaint also alleged that the directors, as a majority of WorldMark’s Board, took actions and enacted policies that affect WorldMark elections and inhibit member communications.

Settlement Announcement

Recently, the Owners and the directors agreed upon a settlement which, if approved by the Court, will fully resolve this lawsuit and partially resolve another lawsuit, WorldMark v. Miller, Sacramento County Case No. No. 34-2008-00025130-CU-PT-GDS, filed in 2008 by WorldMark in California state court to prevent distribution of WorldMark’s member register and owner email addresses.

For more information about the settlement, please click on the Notice of Derivative Settlement.

A copy of the settlement agreement is also available for review, by clicking here: Settlement Agreement and Release.

The Settlement does not affect or resolve a pending class action lawsuit against Wyndham, which also is proceeding as U.S. District Court Case No. C-07-02361 JSW (BZ). In the event the class action against Wyndham is resolved by settlement or by other means, a separate notice will be sent to class members.

If you would like more information, you may contact Plaintiffs’ counsel by e-mail.

Why Girard Gibbs LLP?

Girard Gibbs is a national litigation firm representing consumers, investors, employees, and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.