Acorn International announced today that it entered a Settlement Agreement on July 28, 2017, relating to a December 2016 claim filed against three former members of the company’s Board of Directors. The claim was filed on December 1, 2016, in the Grand Court of the Cayman Islands in response to alleged breaches of fiduciary duties, misconduct and/or mismanagement by the former directors.
The initial filing involved a previously disclosed dispute between two groups of company shareholders. This dispute resulted in the improper removal of Robert Roche as Executive Chairman of Acorn International by members of the company’s previous Board of Directors. The Grand Court of the Cayman Islands ruled that the former directors had breached their fiduciary duties to Acorn International by removing Mr. Roche as Executive Chairman, and were liable to the company for any loss and damage caused as a consequence of these actions.
In accordance with the Settlement Agreement, all parties involved agreed to drop any claims, counterclaims or other proceedings related to the previous disputes. Acorn International’s audit committee reviewed and approved the Settlement Agreement. It was later approved by the company’s current Board of Directors.
Acorn’s President, Jacob Fisch called the agreement a “highly symbolic” moment for the company.
“In addition to being a good deal for our company, this is a highly symbolic moment for Acorn where, after years of difficulty, we are now able to truly put the troubles of our past behind us and be 100% forward-looking as we grow our business into the future, ” Fisch stated in a press release.
Robert Roche, Executive Chairman of Acorn International, stated: “We are pleased with this outcome and are excited that we can now focus our efforts on enhancing and growing the business.”