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The Daily Record: Telos wins key ruling; shareholder derivative claims dismissed

A judge in Baltimore has thrown out the shareholder derivative claims in a $79 million-plus lawsuit against several directors and officers of Telos Corp., an information technology contractor for the military.Telos convinced the court that its Special Litigation Committee, made up of two disinterested directors advised by outside counsel, acted reasonably when it concluded that the suit was not in the company’s best interest.An attorney for plaintiff Costa Brava III L.P., a Boston-based hedge fund, said it plans to pursue the last two counts in the lawsuit, which seek to dissolve the corporation or put it into receivership.“The court did not say our claims did not have merit,” said the attorney, Harry Levy, of Shumaker & Williams in Towson. “It said that the Special Litigation Committee could reasonably reach the conclusion it did.”