South Financial Group, Inc: Injunction grounds a golden parachute

Represented shareholders in derivative litigation challenging board’s decision to accelerate “golden parachute” payments to South Financial Group’s CEO as the company applied for emergency assistance in 2008 under the Troubled Asset Recovery Plan (TARP).

We sought injunctive relief to block the payments and protect the company’s ability to receive the TARP funds. The litigation was settled with the CEO giving up part of his severance package and agreeing to leave the board, as well as the implementation of important corporate governance changes one commentator described as “unprecedented.”

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