INDEX NO.

650866/2015

FILED: NEW YORK COUNTY CLERK 05/20/2016 05:06 PM

NYSCEF DOC. NO. 49

RECEIVED NYSCEF: 05/20/2016

SUPREME COURT OF THE STATE OF NEW YORK

COUNTY OF NEW YORK.
-------------------------------------------------------------------------X

BOB H. LANKFORD, TRUSTEE UNDER

THE ELIZABETH H. LANKFORD BYPASS
TRUST AGREEMENT DATED 9/18/1998,
derivatively on behalf of AMERICAN EXPRESS
COMPANY,
Plaintiff,

Index No. 650866/2015

PRE-ARGUMENT STATEMENT

-againstKENNETH r. CHENAULT, JEFFREY C. CAMPBELL,

DANIEL T. HENRY, CHARLENE BARSHEFSKY,
URSULA M. BURNS, PETER CHERNIN,
THEODORE J. LEONSIS, ANNE MARIE ALICE
LAUVERGEON, SAMUEL J. PALMISANO,
STEVEN S. REINEMUND, EDWARD D. MILLER,
RICHARD A. MCGINN, JAN LESCHL Y,
DANIEL L. VASELLA, ROBERT D. WALTER,
DANIELF. AKERSON, and RONALD A. WILLIAMS,
Defendants;
and
AMERICAN EXPRESS COMPANY,
Nominal Defendant.
--------------------------------------------------------------------){
Full title of the action: As captioned above.
Full name of parties: As captioned above.
Change in Parties: None
Names of CounselFor Appellants:

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Gary S. Graifman
Jay L Brody
KANTRO~TZ,GOLD~ER
& GRAIFMAN, P.C.
747 Chestnut Ridge Road, Suite 200
Chestnut Ridge, New York 10977
Jeffrey J. Ciarlanto
Joseph M. Profy
David Promisloff
PROFY PROMISLOFF & CIARLANTO, P.C.
100 N 22nd Street, Unit 105
Philadelphia, PA 19103
Phone: (215) 259-5156
Fax: (215) 600-2642
Alfred G. Yates, Jr.
Gerald L. Rutledge
LA W OFFICE OF ALFRED G. YATES, JR., P.C.
519 Allegheny Building
429 Forbes Avenue
Pittsburgh, PA 15219
Phone: (412) 391-5164
Fax: (412) 471-1033
. For Respondents:
Richard H. Dolan
SCRLAM STONE & DOLAN LLP
26 Broadway
New York, New York 10004
Evan R. Chesler
Rowan D. Wilson
Kevin J. Orsini
CRA VATR, SWAINE & MOORE LP
825 Eighth Avenue
New York, NY 10019
Court from which Appeal is taken: Supreme Court of the State of New York, County of New
. York.
Order appealed from: This is an appeal from the Final Judgment of the Supreme Court of the
State of New York, County of New York, by the Honorable Shirley Werner Kornreich, dated and
filed electronically on Apri128, 2016.

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Brief description of the action:

This appeal is taken from the Final Judgment of the Honorable Shirley Werner
Kornreich, Supreme Court of the State of New York, New York County. Plaintiffs- Appellants
("Appellants") brought this case as a derivative action against Defendants- Respondents
("Respondents") for breach of their fiduciary duties to the company and other misconduct.
Specifically, Appellants alleged that Respondents knowingly engaged in anticompetitive antitrust
violations under Section 1 of the Sherman Act, 15 U.S.c. , 1, disseminated false and misleading
statements to its shareholders, and engaged in other forms of mismanagement.
Result reached in the action:
On Apri128, 2016, the Supreme Court of the State of New York, County of New York,
Honorable Shirley Werner Kornreich, dismissed the action with prejudice.
Grounds for appeal, reversal, annulment, or modification:
The Appellants respectfully assert that the court below misapprehended the law and facts,
and therefore erred in finding that the conduct alleged was not on its face illegal, that the
business judgment rule applies to Defendants' conduct, that the complaint's allegations are
unparticular and conclusory, and that a demand futility claim was not made out.
Issues proposed to be raised on appeal:
1. Whether Respondent's alleged conduct was illegal and a breach of fiduciary duties
under the law?
2. Whether the business judgement rule applies under the alleged circumstances?
3. Whether the court below correctly determined that Appellants' allegations were
conclusory and failed the pleading standard?
4. Whether a demand by Appellants should be deemed futile under these circumstances?
5. Whether Appellants Complaint should have been dismissed with prejudice?
Attach a copy of the original order, if any, or if applicable a short form order which
contains a memorandum. State whether there is any additional appeal pending in the same
action. If so, date of entry of the order or judgment. Attach a copy of the notice of appeal
and the pre-argument statement.
There is no additional appeal in this same action.
Dated: Chestnut Ridge, New York
May 19,2016
BY:.~

;kyL>" Esq.

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KANTROWITZ, GOLDHAMER
& GRAIFMAN, P.C.
747 Chestnut Ridge Road, Suite 200
Chestnut Ridge, NY 10977
PROFY PROMISLOFF &
CIARLANTO, P.C.
JEFFREY J. CIARLANTO
JOSEPH M. PROFY
DAVID PROMISLOFF
100 N. 22ndStreet, Unit 105
Philadelphia, PA 19103
Phone: (215) 259-5159
Fax: (215) 600-2642
LAW OFFICE OF ALFRED G. YATES,
JR., P.C.
ALFRED G. YATES, JR.
GERALD L. RUTLEDGE
519 Allegheny Building
429 Forbes Avenue
Pittsburgh, PA 15219
Phone: (412) 391-5164
Fax: (412) 471-1033
Attorneys for Plaintiffs-Appellants

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,.

'

650866/2015

'INDEXNO.

SUPREME COURT OF THE STATE

OF NEW YORK CbUNTY OF
NEWYORIC"
'.
"

LANKFORD, et at,
, .Plantif,

,'-aginst-..
CHENAULT, et.al.,
. Defendant.'

"

PRE~ARGUMENT STATEMENT' .

, ,,

l(tntrowitz,

'

'

, GGOld~~T~~:
P,C: .

"

Attorneys for.

.(

',-

Th, Fillt Ari of Pn1Cliciug ,LIu'

Plaintiffs

. 747 CHESTNUT RIDGE ROAD, SUITE 200

CHESTNUT RIDGE, NY 10977-6216 ,
(845) 356-2570

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