Therapy Chain Gets Win Against Ex-Directors Who Kept Legal Award

Former OptimisCorp board members are on the hook for trying to keep millions in damages they won on the physical therapy company’s behalf, a Delaware judge ruled Thursday.

Vice Chancellor Morgan T. Zurn granted summary judgment for Optimis, saying the three ex-directors—who are still stockholders, despite founding a rival business—had no right to hold on to the arbitration award with the aim of giving the money to themselves and others they deemed “innocent” of any wrongdoing, such as their relatives.

Zurn stressed that the arbitration proceedings against the company’s former lawyer were brought derivatively, on behalf of Optimis. Investors pursuing ...