Posts tagged "0903317"

Trematerra, et al. v. Major League Lacrosse, LLC, et al. (Lawyers Weekly No. 09-033-17)

  COMMONWEALTH OF MASSACHUSETTS SUFFOLK, ss SUPERIOR COURT CIVIL ACTION 2017-01140-BLS2 PETER TREMATERRA & ATLANTA LACROSSE CLUB, LLC, Plaintiffs vs. MAJOR LEAGUE LACROSSE, LLC, LAX UNITED MARKETING, LLC, MLL FOUNDING MEMBERS LLC, NEW BALANCE ATHLETICS, INC., DAVID GROSS and JAMES DAVIS, Defendants MEMORANDUMOF DECISIONAND ORDER ON DEFENDANTS’MOTION TO DISMISS Major League Lacrosse, LLC (MLL or the League) operates a professional outdoor lacrosse sportsleague.  In 2014, Peter Trematerra entered into negotiations with MLL and its commissioner David Gross tointroducean Atlanta-basedteaminto the League.  After a year of negotiations, Trematerra formed Atlanta Lacrosse Club, LLC (Atlanta Lacrosse), which purchased an equity interest in MLL and began to operate a team known as the Atlanta Blaze.  In the instant action, Trematerra and Atlanta Lacrosse as the named plaintiffs allege that during these negotiations, Gross made several misrepresentations regarding MLL’s profitability and that he also failed to disclose, among other things, that the League had sold its broadcast and sponsorship rightsat far below market valueto companies owned or controlled by other MLL equity holders.  Plaintiffsfurther allege that, after Atlanta Lacrosse became a MLL member, theLeague’sBoard of Managers and Grossbreached numerousfiduciary and contractualobligations.  The defendants, which include Gross, MLL, and other individuals and entities, now 2   move to dismiss the Complaint pursuant to Mass R. Civ. P. 23.1 and 12(b)(6).  For the reasons that follow, this Court concludes that the defendants’Motion must be Denied, in partand Allowedin part. BACKGROUND The following is drawn from the allegations in the Complainttogether with the exhibits attached thereto. MLL currently has ten members, including Atlanta Lacrosse and MLL Founding Members LLC (MFM).  MFM owns five of the League’s fourteen Teams Units, which equates to 35.72 percent of the membership equity in MLL.  The remaining nine Team Units are each owned by Atlanta Lacrosse and eightother LLCs, which operate the League’s nine lacrosse teams.Defendant James Davis holds interests in some of these LLCs. EachMLLmember elects one individual to serve on MLL’s Board of Managers (the Board). Members approve or deny Board actions in proportion to their respectiveshares of equity.MLL is a Delaware LLC. In April 2008,several yearsbefore Atlanta Lacrosse became a MLL member, the League entered a Broadcast and Digital Rights License Agreement (the Broadcast Agreement) with defendant Lax United Marketing, LLC (LUM). LUM is an entity that was created to produce, market, and license television, internet streaming, and broadcast rights to League games and otherLeague promotional events. At the time, Gross, the League’s Commissioner and COO, was the president of LUM.MFM, defendant New Balance Athletics, Inc. (New Balance), and Davis, who had a controlling interest in New Balance,held equity interests in LUM.1 UndertheBroadcastAgreement, the MLL engaged LUM (among other things) to produce all League games and events and create […]

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Posted by Massachusetts Legal Resources - November 4, 2017 at 8:31 am

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