Judge Dismisses Insider Trading Suit Against Rocket's Dan Gilbert

Judge dismisses insider trading suit against Rocket's Dan Gilbert

Rocket Companies scored a win in a derivative lawsuit alleging insider trading by its primary stakeholder, Rocket Holdings, Inc. (RHI), an entity owned by founder and chairman Dan Gilbert, and its board of directors. The lawsuit stemmed from two complaints, one filed by the Doris Shenwick Trust in November 2021 and another by investor Christopher Vargoshe in February 2022. The plaintiffs claimed Gilbert pocketed $500 million by selling company s…

Rocket Board Beats $500M Insider Trading Suit in Delaware Court - USA Herald

The Delaware Court of Chancery has dismissed a derivative shareholder lawsuit accusing the board of Rocket Companies Inc., its chairman, and controlling stockholder of breaching fiduciary duties by allegedly selling $500 million worth of stock based on material nonpublic information. Chancellor Kathaleen St. J. McCormick ruled that the plaintiffs failed to demonstrate a motive to support their claims. The lawsuit alleged that Rocket’s board chai…