Former 6D Global Directors Settle With Shareholders

6D Global Settles Suit Over PE CEO’s Stock Scheming
– Law360

Law360 covered Manatt’s representation of the former outside directors of the digital marketing company, 6D Global Technologies Inc. Represented by Manatt’s Andrew Morrison, co-chair of the firm’s litigation services practice, and litigation associate Samantha Katze, the former outside directors reached a settlement following a putative class action lawsuit brought by shareholders.

Morrison and Katze helped settle claims that the company had failed to stop a private equity firm’s CEO from manipulating its share price. Shareholders alleged securities fraud and fiduciary violations, claiming that 6D Global hid investor Benjamin Wey’s significant stock ownership from the public and failed to prevent him from tampering with the company’s share price and volume.

The settlement was reached after both parties agreed to enact a set of corporate reforms.