Update: Judge Closes Divorce Testimony to Public

0

An L.A. County Family Court judge on Monday agreed to close from public view any testimony related to Capital Group Cos.’ finances during the divorce trial of an executive for the L.A. money manager including from company executives and forensic accountants who are being called to testify about the company’s stock value.


Capital Group is not party to the divorce trial, between Timothy Armour, an executive with the downtown L.A. fund management firm, and his wife, Nina Ritter. The company interjected itself into the proceeding to make sure all its financial dealings remain under seal.


Judge John H. Sandoz, an assistant supervising judge in Family Court, also agreed to place about 80 Capital Group documents under seal. The judge said he will decide whether to unseal anything after witnesses have testified and he has read the documents.


The Los Angeles Times had asked Sandoz to keep the proceedings and documents open and available to the public. Times lawyers said the paper is considering whether to appeal the judge’s ruling.


Ritter claims she is entitled under California community property law to half the stock held in a family trust, worth tens of millions of dollars. Capital Group sued Ritter in Delaware Court, saying she signed a confidentiality agreement acknowledging that the stock is only allowed in employees’ hands.


The company has offered to redeem the stock. Ritter claims she wants to keep the stock, and does not want to be subject to the capital gains taxes that a cash payout would trigger.

No posts to display