August 24, 2021 in Case Summaries

In one of the first appeals to be decided under the 2019 amendments to the Texas Citizens Participation Act, the Dallas Court of Appeals faced the question whether a derivative action brought by Levinger PC client Accela Capital Services against the directors of a company owned by Accela should have been dismissed on the ground that the transactions at issue were protected as an exercise of the right of association.  The Court held that the TCPA did not apply because the self-dealing and breach of fiduciary duties alleged by Accela concerned private business matters and were not “based on or in response to [the directors’] exercise of the right of association.”  And because the TCPA did not apply, the Court did not address the remaining issues concerning the other steps in the TCPA analysis—whether Accela proved a prima facie case or a TCPA exemption.  Good v. Accela Capital Services, Inc., No. 05-20-01097-CV, 2021 WL 3732614 (Tex. App.—Dallas Aug. 24, 2021, pet. denied) (mem. op.).

Courts:  Texas Intermediate Courts; Texas Supreme Court

Subject Matter:  Business Litigation; Securities Matters and Fraud