Komlossy Law, P.A. is one of the three counsel that had the dismissal of the Medtronic shareholder litigation reversed and remanded in late January.
Medtronic’s $43 billion inversion created a taxable event for its shareholders which will leave many on the hook for thousands and thousands of dollars so that the company can escape the United States. The top executives of the company would owe more than $60 million in excise taxes for approving the move, but they also approved that the company cover all of those taxes for them. The trial court determined, among other things, that the litigation must be derivative because the shareholders and the company suffered the same alleged injury. The appeals court reversed.
The decision further clarifies Minnesota’s law on direct vs. derivative shareholder litigation.
The opinion from the Court of Appeals is available here.