Court Denies Shakey's CEO's Application for Bond. According to pizzamarketplace.com, Shakey's franchisees are feeling pretty confident about the outcome of their fraud class action against their franchisor after a California judge denied the CEO's petition for an $838,000 bond to cover Shakey's anticipated legal expenses. Thirty-nine Shakey's franchisees have filed a class action suit against Shakey's and Chin-Yong, Shakey's CEO, alleging fraud and negligent misrepresentation against Chin-Yong and breach of contract, breach of the implied covenant of good faith and fair dealing, fraud and other claims against Shakey's. According to the plaintiffs' lawyer, in order for the judge to grant Chin-Yong's petition, he would have had to find that Chin-Yong has a reasonable chance of successfully defending the fraud claim.
Posted by franchiselawblog at January 8, 2004 12:31 PM