Counsel Concerns

Songwriter's Widow'Sues His Lawyer

While the copyrighted songs he wrote for B.B. King and Eric Clapton were once worth millions to him, Texas songwriter Jerry Lynn Williams died penniless in 2005 aboard a broken-down yacht docked in the Dutch West Indies, far away from a $1.1 million arbitration award entered against him in Austin that same year.

Litigation involving Williams' music spanned for years after his death from liver problems. Hamstein Cumberland Music Group, which had won the licensing dispute award against Williams, later compelled a Tulsa federal court in 2011 to rule that Williams' estate had fraudulently transferred his assets to his ex-wife Lorelei Williams through a divorce decree. Hamstein Cumberland Music Group v. Estate of Williams, 06-cv-63 (N.D. Okla. 2011).

Now Lorelei Williams, of Tulsa, has filed a negligence suit against Williams' longtime attorney, Keith A. Ward, in a Travis County district court. Lorelei blames Ward for failing to provide discovery responses and failing to appear in the 2005 Austin arbitration proceeding, which resulted in the $1.1 million award that included a $500,000 sanction. 'These failures resulted in the imposition of a sanction by the arbitrator in an amount in excess of $500,000,' according to Williams v. Ward, which was filed in May 2015. 'The sanction additionally imposed an evidentiary 'death penalty' prohibiting the introduction of any evidence that the subsequent arbitration hearing not produced in discovery.'

Ward, of Tulsa's Keith A. Ward & Associates, argues Lorelei's petition lacks merit, pointing to the 2011 fraud finding against her in Hamstein Cumberland Music Group. 'Jerry Williams was one of the most talented songwriters and performers in modern popular music. He and his talents had very few peers,' Ward said. 'It causes me great sadness that Lorelei Williams would continue to blight Jerry's legacy with a lawsuit like this. The lawsuit has absolutely no merit, and it causes me additional sadness to know that Lorelei is so desperate that she would make such a silly money grab,' Ward said.

Ward noted that the Tulsa federal court found as a matter of law and a matter of fact in Hamstein Cumberland Music Group that 'Lorelei participated in a scheme to defraud Mr. Williams' creditors, a scheme in which I declined to participate. That alone should speak volumes,' Ward insisted.

The Hamstein Cumberland Music Group decision noted that Ward advised Jerry Williams before his death that neither bankruptcy nor divorce could shield his assets if it was done to shield or hinder creditors.

Kyle W. Farrar, a partner in Houston's Kaster Lynch, Farrar & Ball, who represent Lorelei Williams, did not return two calls for comment in this article.

' John Council, Texas Lawyer

$275 Awarded to'Activision From'Settlement of Its'Shareholders' Suit'Against Former CEO

In a record settlement for a derivative lawsuit, a Delaware Chancery Court judge has granted final approval of a $275 million deal to resolve a challenge by shareholders of Activision Blizzard Inc. In Re Activision Blizzard Inc. Stockholder Litigation, Consolidated C.A. No. 8885-VCL. Vice Chancellor Travis Laster also opted not to follow the novel move made in another recent derivative settlement, where a Delaware judge allowed some of the money to go directly to shareholders. Here, Laster opted for the traditional route of giving the entire payment to Activision.

The case arose from Vivendi SA's sale of a controlling stake in Activision back to the video game maker in 2013. At the same time, some Activision stock was bought by an investor group that included Activision CEO Bobby Kotick and co-chairman Brian Kelly. The suit accused them, Vivendi and other individuals of breaching their fiduciary duty to Activision by allowing the duo so much control as a result of the stock buy-back.

Michael Farhang of Gibson, Dunn & Crutcher represented Vivendi, as did Richards, Layton & Finger. Activision was represented by Edward Welch of Skadden, Arps, Slate, Meagher & Flom.

The settlement was also a victory for lead plaintiffs' lawyer Joel Friedlander of Friedlander & Gorris, who had set off a round of infighting with other plaintiffs' lawyers when he presented the settlement to the court. Shareholder Douglas Hayes ' represented by Kessler, Topaz, Meltzer & Check and Prickett, Jones & Elliott ' argued that some portion of the settlement should go directly to shareholders, as it did in another high-profile derivative settlement. There, in a resolution of claims arising from Freeport-McMoRan Inc.'s acquisition of McMoRan Exploration, shareholders received $137.5 million.

'[The shareholder] objects to the failure to pay any consideration directly to the class, but this is hardly an altruistic position,' wrote Vice Chancellor Laster, noting that the challenging law firms had failed in their bid to be lead counsel. 'Hayes hopes that by reallocating the consideration, his counsel can justify a fee award and partially rectify the injustice they feel they suffered in the leadership dispute.'

Laster also noted that because the settlement was driven by corporate law claims, it was reasonable for the recovery to go back to Activision. The company's current shareholders, the judge added, would receive an indirect benefit.

Laster awarded $72.5 million in fees to Friedlander's firm, and to Bragar Eagel & Squire and Rosenthal, Monhait & Goddess. The judge also authorized a $50,000 incentive payment to lead plaintiff Anthony Pacchia.

Sullivan & Cromwell and Morris, Nichols, Arsht & Tunnell represent the two Activision board members who were sued. Wachtell, Lipton, Rosen & Katz represents another group of individual defendants.

' Scott Flaherty, Litigation Daily

Songwriter's Widow'Sues His Lawyer

While the copyrighted songs he wrote for B.B. King and Eric Clapton were once worth millions to him, Texas songwriter Jerry Lynn Williams died penniless in 2005 aboard a broken-down yacht docked in the Dutch West Indies, far away from a $1.1 million arbitration award entered against him in Austin that same year.

Litigation involving Williams' music spanned for years after his death from liver problems. Hamstein Cumberland Music Group, which had won the licensing dispute award against Williams, later compelled a Tulsa federal court in 2011 to rule that Williams' estate had fraudulently transferred his assets to his ex-wife Lorelei Williams through a divorce decree. Hamstein Cumberland Music Group v. Estate of Williams, 06-cv-63 (N.D. Okla. 2011).

Now Lorelei Williams, of Tulsa, has filed a negligence suit against Williams' longtime attorney, Keith A. Ward, in a Travis County district court. Lorelei blames Ward for failing to provide discovery responses and failing to appear in the 2005 Austin arbitration proceeding, which resulted in the $1.1 million award that included a $500,000 sanction. 'These failures resulted in the imposition of a sanction by the arbitrator in an amount in excess of $500,000,' according to Williams v. Ward, which was filed in May 2015. 'The sanction additionally imposed an evidentiary 'death penalty' prohibiting the introduction of any evidence that the subsequent arbitration hearing not produced in discovery.'

Ward, of Tulsa's Keith A. Ward & Associates, argues Lorelei's petition lacks merit, pointing to the 2011 fraud finding against her in Hamstein Cumberland Music Group. 'Jerry Williams was one of the most talented songwriters and performers in modern popular music. He and his talents had very few peers,' Ward said. 'It causes me great sadness that Lorelei Williams would continue to blight Jerry's legacy with a lawsuit like this. The lawsuit has absolutely no merit, and it causes me additional sadness to know that Lorelei is so desperate that she would make such a silly money grab,' Ward said.

Ward noted that the Tulsa federal court found as a matter of law and a matter of fact in Hamstein Cumberland Music Group that 'Lorelei participated in a scheme to defraud Mr. Williams' creditors, a scheme in which I declined to participate. That alone should speak volumes,' Ward insisted.

The Hamstein Cumberland Music Group decision noted that Ward advised Jerry Williams before his death that neither bankruptcy nor divorce could shield his assets if it was done to shield or hinder creditors.

Kyle W. Farrar, a partner in Houston's Kaster Lynch, Farrar & Ball, who represent Lorelei Williams, did not return two calls for comment in this article.

' John Council, Texas Lawyer

$275 Awarded to'Activision From'Settlement of Its'Shareholders' Suit'Against Former CEO

In a record settlement for a derivative lawsuit, a Delaware Chancery Court judge has granted final approval of a $275 million deal to resolve a challenge by shareholders of Activision Blizzard Inc. In Re Activision Blizzard Inc. Stockholder Litigation, Consolidated C.A. No. 8885-VCL. Vice Chancellor Travis Laster also opted not to follow the novel move made in another recent derivative settlement, where a Delaware judge allowed some of the money to go directly to shareholders. Here, Laster opted for the traditional route of giving the entire payment to Activision.

The case arose from Vivendi SA's sale of a controlling stake in Activision back to the video game maker in 2013. At the same time, some Activision stock was bought by an investor group that included Activision CEO Bobby Kotick and co-chairman Brian Kelly. The suit accused them, Vivendi and other individuals of breaching their fiduciary duty to Activision by allowing the duo so much control as a result of the stock buy-back.

Michael Farhang of Gibson, Dunn & Crutcher represented Vivendi, as did Richards, Layton & Finger. Activision was represented by Edward Welch of Skadden, Arps, Slate, Meagher & Flom.

The settlement was also a victory for lead plaintiffs' lawyer Joel Friedlander of Friedlander & Gorris, who had set off a round of infighting with other plaintiffs' lawyers when he presented the settlement to the court. Shareholder Douglas Hayes ' represented by Kessler, Topaz, Meltzer & Check and Prickett, Jones & Elliott ' argued that some portion of the settlement should go directly to shareholders, as it did in another high-profile derivative settlement. There, in a resolution of claims arising from Freeport-McMoRan Inc.'s acquisition of McMoRan Exploration, shareholders received $137.5 million.

'[The shareholder] objects to the failure to pay any consideration directly to the class, but this is hardly an altruistic position,' wrote Vice Chancellor Laster, noting that the challenging law firms had failed in their bid to be lead counsel. 'Hayes hopes that by reallocating the consideration, his counsel can justify a fee award and partially rectify the injustice they feel they suffered in the leadership dispute.'

Laster also noted that because the settlement was driven by corporate law claims, it was reasonable for the recovery to go back to Activision. The company's current shareholders, the judge added, would receive an indirect benefit.

Laster awarded $72.5 million in fees to Friedlander's firm, and to Bragar Eagel & Squire and Rosenthal, Monhait & Goddess. The judge also authorized a $50,000 incentive payment to lead plaintiff Anthony Pacchia.

Sullivan & Cromwell and Morris, Nichols, Arsht & Tunnell represent the two Activision board members who were sued. Wachtell, Lipton, Rosen & Katz represents another group of individual defendants.

' Scott Flaherty, Litigation Daily