A lawsuit that called for the Raiders to reveal confidential financial information has been settled, according to published reports. Terms of the settlement were not made public as club officials and lawyers for the heirs of Edward W. McGah reportedly told reporters they were bound by a confidentially agreement in the settlement reached in Alameda County (Calif.) Superior Court on Oct. 19, 2005.
"I will confirm that we have settled the matter and that we are very satisfied," Raiders Chief Executive Officer Amy Trask told the Oakland Tribune. "This settlement contains a confidentially provision, so I won't comment any further."
The dispute reportedly began in 2003 when Sherratt Reicher, the great-grandson of Raiders co-founder E.W. McGah, filed a civil suit accusing Raiders owner Al Davis of mismanaging funds, breaching the partnership contract and failing to act in the financial interests of team owners.
The lawsuit originally sought to remove Davis as Raiders' managing general partner and called for the team to release confidential financial documents so that the McGah family could settle estate tax issues pending since E.J. McGah's death in 2002.
The McGah family reportedly holds 31 percent share of the team, second only to the 37 percent owned by Davis. E.J. McGah's father, E.W. McGah, was part of a Raiders ownership group that hired Davis as general manager and coach in 1963.
Forbes magazine in 2004 listed the value of the Raiders franchise at $624 million.
Reicher argued in the original lawsuit that he should have access to team financial information because when E.J. McGah died, Reicher became a limited partner with the right to vote and access business records.
Davis' attorneys argued that the team interest inherited by the McGah family didn't include partnership rights and access to financial records. The Raiders claimed the family's status changed to a "asignees" of a limited partner with the 2002 death of E.J. McGah.
In November 2004, an Alameda County Superior Court judge ruled in favor of Reicher, saying he does maintain status as a limited partner but denied him access to team business records.
The suit was partially decided in April 2004 when a judge ruled that the McGah family lacks the legal standing to remove Davis as the team's managing general partner.
McGahs Remain Partners An Alameda County (Calif.) judge ruled that the family of a Raiders co-founder remains limited partners in the NFL franchise. The decision, released Nov. 10, 2004 by Judge James Richman, allows the descendants of E.J. McGah to access team financial records, keep voting rights and retain other ownership privileges.
Davis' attorneys argued unsuccessfully that the team interest inherited by the McGah family didn't include partnership rights and access to business records. The Raiders claimed the family's status changed to a "asignees" of a limited partner with the 2002 death of E.J. McGah, the son of a Raiders co-founder.
Sheratt Reicher, the great-grandson of Raiders co-founder Edward W. McGah, reportedly filed a civil suit in October 2003 accusing Raiders owner Al Davis of mismanaging funds, breaching the partnership contract and failing to act in the financial interests of team owners.
The suit was partially decided in April 2004 when a judge ruled that the McGah family lacks the legal standing to remove Davis as the team's managing general partner.
The McGah family reportedly holds 31 percent share of the team. The value of the NFL franchise has been estimated between $400 million and $500 million. Davis reportedly owns 40 percent of the franchise.
E.J. McGah reportedly was second to Davis in shares held of the Raiders franchise. McGah's father, E.W. McGah, was part of a Raiders ownership group that hired Davis as general manager and coach in 1963.
Judge Sides With Davis
An Alameda (Calif.) County Superior Court judge ruled that the family of an Oakland Raiders co-founder lacks legal standing for much of a lawsuit against Raiders owner Al Davis, according to published reports April 2, 2004.
The lawsuit, filed in October 2003, called for Davis to be removed from his current role as the team's managing general partner for alleged mismanagement, wrongful misappropriation of funds, fraud and breach of contract.
Judge Judith Ford ruled that the family of Raiders co-founder Edward W. McGah "cannot seek an order removing the general partner or, as an alternative, to dissolve the Raiders partnership." Ford reasoned that the plantiffs - Barbara McGah and Sherratt Reicher - could only pursue their claims if they had the backing of the remaining eight to 10 interests in the team's partnership.
Ford's latest ruling comes after a separate court decision denying the family's request for access to team financial records that the plantiffs claimed they were wrongly denied.
The standing of McGah's descendants within the Raiders partnership reportedly is the only issue unresolved in the lawsuit.
"The case has no merit and will ultimately be thrown out entirely," attorney Joseph Cotchett, who represents Davis, said in a written statement.
The McGah family reportedly holds 31 percent share of the team. The value of the NFL franchise has been estimated between $400 million and $500 million.
E.W. McGah, was part of a Raiders ownership group that hired Davis as general manager and coach in 1963. Davis reportedly was made a general partner in the franchise in 1966.
Family Sues Davis
The family of the late E.J. McGah has sued Raiders owner Al Davis, according to published reports. The suit, filed in Alameda County (Calif.) Superior Court on Oct. 10, 2003, calls for Davis to be removed from his current role as the team's managing general partner for alleged mismanagement, wrongful misappropriation of funds, fraud and breach of contract.
McGah, who passed away in 2002, reportedly was second to Davis in shares held of the Raiders franchise. McGah's father, E.W. McGah, was part of a Raiders ownership group that hired Davis as general manager and coach in 1963.
Jeff Birren, general consuel for the team, told The Associated Press in an e-mail that "This is a frivolous lawsuit without merit that was filed by disgruntled representatives of an estate."
The suit names Davis and A.D. Football Inc., the Davis-led corporation that runs the Raiders. The family also claims the team has refused to grant access to partnership records as heirs try to determined the taxable value of their reported 31 percent stake in the NFL franchise.
