DALLAS, February 10, 2014 – Yesterday Highland Capital achieved a resounding victory in our litigation with Patrick Daugherty. The jury found that not only did Mr. Daugherty steal documents, but he also violated his employment agreement and intentionally breached his fiduciary duty to the firm. We’re pleased the jury recognized his egregious misconduct and ordered he pay $2.8 million for our legal fees. We’re also pleased that the jury denied a litany of frivolous claims against the firm, which we believe amounted to an attempt at extortion.
In fact, the only award in favor of Mr. Daugherty was the Highland Employee Retention Assets (HERA) units already in his name. Regarding the defamation finding, the jury awarded no monetary damages because the alleged defamatory statements were said under privilege and no harm was done.
We are grateful to all those involved for their hard work and efforts in vindicating Highland, as well as Patrick Boyce and Lane Britain in particular, whose inclusion in the suit was frivolous and found to be wholly without merit.
We’re pleased that this matter has been resolved. To be clear, Highland never wanted this litigation but was forced to act when Mr. Daugherty refused repeated requests that he comply with agreements in place necessary to protect investors and the firm. Most importantly, investors can rest assured that Highland remains steadfast in its resolve to protect investors and maximize returns to our clients.
Our results speak for themselves. In fact, the past year was perhaps the strongest in the firm’s history. The entire team is focused on continuing to deliver outstanding results.
About Highland Capital Management
Highland Capital Management is an SEC-registered investment adviser which, together with its affiliates, has approximately $18 billion of assets under management. Founded in 1993 by Jim Dondero and Mark Okada, Highland is one of the largest and most experienced global alternative credit managers. Highland’s strategies include collateralized loan obligations (CLOs), high yield bonds, distressed credit, public and private equities, structured products and natural resources.