Therapy Chain Advances Claim That Directors Kept Court Winnings

OptimisCorp., which runs a California physical therapy chain, can proceed with allegations that three former board members pocketed millions they won on the company’s behalf litigating legal malpractice claims over the abortive ouster of its CEO, a Delaware judge ruled Thursday.

Vice Chancellor Morgan Zurn let the complex lawsuit move forward in Delaware Chancery Court, where Optimis has accused the three ex-directors of wrongly keeping nearly $9 million they won in the earlier derivative case, including fees and interest. They now run a competing business.

Zurn rejected the idea that the former board members had the right to dole out ...