Courthouse Steps

CAUSES OF ACTION: Breach of fiduciary duty; constructive fraud; and unjust enrichment.

COMPLAINT ALLEGATIONS: The plaintiff is a leading company in the field of licensing and merchandising corporate brands and entertainment properties. Barron is a senior managing director at Bear Stearns, an investment banker. In March 2004, the plaintiff was presented with an opportunity to acquire Elvis Presley Enterprises (EPE), the company that controls the intellectual property rights for the Elvis Presley estate. Global began to actively pursue the acquisition and disclosed the opportunity to Barron. The fact that EPE was potentially on the market was highly confidential. Barron recommended discussing the investment with Robert F.X. Sillerman. She also executed a confidentiality agreement acknowledging Bear Stearns as a 'representative of Global Icons.' Barron was authorized to disclose the possible acquisition to Sillerman as a possible investor. After discussions, Global agreed to relinquish the right to acquire EPE to Sillerman, cease efforts to raise financing, and assist Sillerman in acquiring it. In exchange, Sillerman agreed to grant Global the right to control the licensing and merchandising operations. Sillerman acquired EPE with financing arranged by the defendants but breached his agreement with Global. The defendants knew Global wouldn't be granted the licensing rights and ignored their fiduciary duties to Global. The defendants got millions of dollars for introducing Sillerman to the transaction and Global got frozen out.