Costa Brava Partnership III, L.P. v. Telos Corp. (Cir. Ct. Balto. City)

Filed November 29, 2006--Opinion by Judge Albert J. Matricciani, Jr.

Motion for the appointment of a receiver. Plaintiffs sought this relief due to the recent resignations of six of the seven independent directors of Telos and the failure of efforts to restructure Telos in order to satisfy the obligations allegedly owed to plaintiffs by virtue of their ownership of certain publicly traded securities.

The Court denied relief holding that the plaintiffs failed to show specific evidence of fraud, oppression or illegal conduct to permit the Court to appoint a receiver. The Court rejected consideration of the alternative equitable remedy suggested by the plaintiffs based upon a change in outside directors or a management dispute over strategic plans.

The full opinion is available in PDF.