When was the motion to dismiss denied in the litigation involving individuals associated with My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
GATION**
In June 2020, a shareholders' derivative suit (Lincolnshire Police Pension Fund, et al. v. Taylor, et al., No. 20200487) was filed in the Delaware Court of Chancery against nominal defen dant Floor & Decor, and certain Floor & Decor officers and directors, including John Roth and Brad Brutocao, and certain former shareholders, alleging breach of fiduciary duty and unjust enrichment. A motion to dismiss the litigation was denied in December 2023. John Roth and Brad Brutocao denied any violations of law, breaches of duty, or other wrongdoing throughout the course of this dispute and maintained D&O insurance to cover their defense costs in their capacity as former directors of Floor & Décor. The parties settled this dispute amicably via a Stipulation of Compromise and Settlement order—entered September 19, 2024—whereby all combined codefendants agreed to pay plaintiffs a set
Source: Item 3 — LITIGATION (FDD page 18)
What This Means (2025 FDD)
According to the 2025 FDD, a shareholders' derivative suit (Lincolnshire Police Pension Fund, et al. v. Taylor, et al., No. 20200487) was filed in the Delaware Court of Chancery in June 2020 against Floor & Decor, as well as certain officers and directors including John Roth and Brad Brutocao. The suit alleged breach of fiduciary duty and unjust enrichment.
The motion to dismiss the litigation was denied in December 2023. Roth and Brutocao denied any violations and maintained D&O insurance to cover their defense costs as former directors of Floor & Décor.
The parties settled the dispute amicably via a Stipulation of Compromise and Settlement order entered on September 19, 2024. All combined co-defendants agreed to pay plaintiffs a settlement payment totaling $8,000,000.