Shareholder Sues Carolco, Stallone: A derivative shareholder’s...

Shareholder Sues Carolco, Stallone: A derivative shareholder’s suit was filed against Mario Kassar, chairman of Carolco Pictures Inc., and 13 other officers and directors of the firm, including actor Sylvester Stallone, alleging that they improperly approved the purchase of stock from Kassar. The Los Angeles Superior Court lawsuit filed on behalf of Carolco stockholder Benjamin Fleisig alleges breach of fiduciary duty in the approval of a repurchase Sept. 24 of 3.4 million shares of Carolco stock from Kassar. The suit said Kassar sold the stock for $45 million, or $13 a share, giving him a profit of $11.5 million over his acquisition cost. The price was $5.75 above the most recent closing price on the New York Stock Exchange, the suit said. (Case No. BC014065. Filed Oct. 31, 1990)