Unanimous Jury Verdicts Fully Vindicate De Tomaso Automobili in High-Profile Federal Trial
De Tomaso Automobili has secured a decisive legal victory, obtaining unanimous jury verdicts in its favor in a closely watched federal action brought by its former Chief Executive Officer, Ryan Berris. Following a six-day trial in the United States District Court for the Southern District of New York, the jury rejected every claim asserted by Berris and instead ruled in favor of De Tomaso and its owner, Norman Choi, including on the company’s affirmative claims for breach of fiduciary duty.
The verdicts bring to a close litigation that Berris initiated in 2023, when he filed suit alleging that he was wrongfully forced out of the company as part of what he characterized as a fraudulent scheme. In his complaint, Berris claimed that he was instrumental in reviving the historic Italian marque, that he held an equity interest in De Tomaso Automobili, and that he was entitled to substantial compensation, including ownership interests and one of the company’s bespoke limited-edition supercars. He asserted that his lawsuit would “reverberate loudly across the world of limited edition, exclusive, multi-million-dollar supercars.”
After hearing extensive testimony and reviewing the evidence, the jury unanimously rejected those assertions in their entirety.
Rejection of Alleged Oral Agreement and Equity Claims
Central to Berris’s case was his claim that De Tomaso had breached an alleged oral compensation agreement. According to Berris, that purported agreement entitled him to equity in the company and additional benefits beyond his paid compensation, including a custom-built De Tomaso vehicle. The jury found no merit in these claims.
The verdict conclusively established that no enforceable oral agreement existed and that Berris did not hold any ownership interest in De Tomaso Automobili. The jury further determined that Berris had no contractual right to the compensation or benefits he claimed, including any entitlement to equity or to a limited-edition supercar. In doing so, the jury rejected the foundation of Berris’s lawsuit and confirmed De Tomaso’s longstanding position that his claims were unsupported by the facts or the law.
Fraud and Misconduct Allegations Unanimously Dismissed
Berris also accused Norman Choi of engaging in fraudulent, dishonest, or unjust conduct in connection with the alleged oral agreement. Those allegations, too, were unanimously rejected by the jury. The verdicts confirm that Choi did not engage in fraud or misconduct and that the claims advanced by Berris lacked credibility.
In addition, the jury rejected Berris’s defamation claim, which was based on statements concerning his conduct while serving as CEO. Those statements included assertions that Berris entered into contracts without proper board approval, incurred questionable expenses, and was separated from the company due to misconduct. The jury’s verdict confirms that these statements were not defamatory and that Berris failed to meet his burden of proof on this claim.
Together, these findings amount to a comprehensive repudiation of Berris’s narrative and allegations, validating De Tomaso’s defense throughout the litigation.
Jury Finds Berris Breached Fiduciary Duties
While the jury rejected all of Berris’s claims, it found in favor of De Tomaso on its affirmative claims against him. The jury concluded that Berris breached his fiduciary duties to the company and awarded damages to De Tomaso as a result.
Specifically, the jury found that Berris breached his duty of loyalty by failing to place the company’s interests ahead of his own. The verdict reflects the jury’s determination that Berris took actions that were not entirely fair to De Tomaso and that prioritized his personal interests over those of the company he was entrusted to lead.
The jury also found that Berris breached his duty of care. According to the verdict, he acted with reckless indifference or outside the bounds of reasonable decision-making, and those actions were a substantial factor in causing harm to De Tomaso Automobili. These findings underscore the jury’s conclusion that Berris’s conduct as CEO fell well short of the standards required of a corporate fiduciary.
A Clear and Decisive Outcome
The unanimous nature of the verdicts across all claims highlights the clarity of the jury’s conclusions. After hearing the evidence presented by both sides, the jury decisively sided with De Tomaso and Norman Choi, rejecting Berris’s allegations and affirmatively finding that his own misconduct harmed the company.
Lead trial counsel for De Tomaso, Paul Werner of Sheppard, commented on the outcome, stating: “The jury’s sound and commonsense verdict confirms what De Tomaso has said from day one: Berris’s misconduct seriously harmed the company. The verdicts finally set the record straight.”
Werner’s remarks reflect the significance of the verdicts not only as a legal victory, but also as a public vindication of De Tomaso’s position. Throughout the litigation, De Tomaso maintained that Berris’s claims were meritless and that the true story involved his failure to meet his fiduciary obligations to the company. The jury’s findings fully align with that position.
Context and Implications
The case drew attention due to the high-profile nature of De Tomaso Automobili, a storied automotive brand associated with exclusivity, craftsmanship, and high-performance vehicles. Berris’s lawsuit sought to leverage that visibility, framing the dispute as a dramatic battle over the revival of a legendary marque. However, the trial record and the jury’s verdicts tell a very different story.
Rather than substantiating claims of ownership, fraud, or wrongful conduct by the company or its owner, the jury found that Berris lacked any equity interest, had no contractual entitlement to the benefits he claimed, and himself engaged in conduct that breached fundamental fiduciary duties. The damages award against Berris further reinforces the conclusion that his actions caused real and measurable harm to De Tomaso Automobili.
For De Tomaso, the verdicts provide closure and clarity. They eliminate lingering questions raised by the litigation and affirm the integrity of the company’s governance and leadership. They also reinforce the principle that corporate executives are held to strict standards of loyalty and care, and that breaches of those duties carry serious consequences.
Counsel Representation
Sheppard served as counsel to De Tomaso Automobili and Norman Choi throughout the litigation, guiding the company through pretrial proceedings, trial, and ultimate verdict. The firm’s trial team presented a comprehensive case that dismantled Berris’s claims and demonstrated the factual and legal basis for De Tomaso’s affirmative claims.
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