PacLink Communications Internat., Inc. v. Superior Court

In PacLink Communications Internat., Inc. v. Superior Court (2001) 90 Cal.App.4th 958, the plaintiffs, who collectively owned a minority interest in the company, sued the majority interest holders for allegedly transferring company assets to another company in which the plaintiffs had no interest, without adequate consideration being paid. (Id. at p. 961.) The majority interest holders challenged the plaintiffs' standing to bring a direct action and the appellate court agreed that the plaintiffs' allegations established injury to the company, not the individual interest holders. (Id. at p. 964 "the essence of plaintiffs' claim is that the assets of PacLink . . . were fraudulently transferred without any compensation being paid to the company . . . which constitutes an injury to the company itself".)