FOR IMMEDIATE RELEASE
February 18, 2025
Contact:
Amnon Siegel
+1 310-552-7557
asiegel@millerbarondess.com
Los Angeles, CA – (BUSINESS WIRE) – Christopher Coffey, an early pioneer in the remote security surveillance industry, has filed a lawsuit against multi-billion-dollar, international security company, Garda Security, Inc. Coffey alleges that Garda violated his rights as a minority shareholder of eCAMSECURE (“eCAM”), a Garda subsidiary that Coffey sold to Garda in 2019, by breaching contractual agreements and fiduciary duties. He alleges that Garda circumvented his right to require that Garda’s acquisition of Stealth Topco Holdings, LLC, which closed in October 2024, be made by eCAM, in which Coffey owns a minority interest (rather than by another Garda subsidiary). Coffey is represented by Amnon Z. Siegel of Miller Barondess, LLP, and Theodore J. Cohen and Stuart Johnson of Cohen Johnson Bartlett LLP.
Coffey revolutionized the security industry by pioneering the remote security surveillance business. In 2019, he sold his businesses to Garda, retaining a 10% interest in eCAM, which Coffey considered the gem of his businesses. As part of the sale, Coffey negotiated specific minority stockholder protections, including an agreement that ensured he would benefit from eCAM’s future revenue growth, including from acquisitions.
Coffey alleges that, in October 2024, without his required consent, Garda acquired Stealth Topco Holdings, LLC, Stealth Monitoring Inc., and their subsidiaries (collectively, “Stealth”)—key competitors of eCAM in remote security surveillance. Per the complaint, this acquisition directly breached Coffey’s minority stockholder rights, which required that any such acquisition be made by eCAM, not by any other Garda affiliate. Despite being obligated to obtain Coffey’s approval, Garda allegedly circumvented these protections by acquiring Stealth through an affiliated entity in which Coffey holds no interest.
Further exacerbating these violations, Garda and the majority of eCAM’s directors—who are also directors of Garda—allegedly failed to uphold their fiduciary duties to Coffey as a minority shareholder by, among other things, failing to present the Stealth acquisition as a corporate opportunity to eCAM’s board. Post-acquisition, Garda integrated Stealth’s business and announced plans to operate the combined businesses under the eCAM name.
Coffey’s lawsuit asserts that these actions were designed to deprive him of his rightful 10% share in the revenues derived from eCAM, including Stealth’s acquired business.
According to Theodore Cohen, “Mr. Coffey retained a minority interest in eCAM so he could participate in its future growth, whether organic or by acquisition. Garda capitalized on eCAM’s market position and brand to make the Stealth acquisition a success, but seeks to deny Coffey his right to participate by buying Stealth through an entity in which Mr. Coffey holds no interest.”
“This is a rather blatant case of corporate greed and misconduct. Garda and its directors knowingly trampled Mr. Coffey’s rights in violation of their contractual and fiduciary obligations. We look forward to pursuing full recovery for Mr. Coffey.” said Amnon Siegel.
The case is Christopher Coffey, et al. v. Garda Security, Inc., et al., Los Angeles County Superior Court, Case No. [pending]
About Miller Barondess, LLP:
Miller Barondess, LLP is a Los Angeles-based law firm that specializes in litigation, including trial, arbitration, and appellate proceedings in California and nationwide. The firm represents both plaintiffs and defendants across a wide range of sectors, including private equity, securities, financial services, intellectual property, patents, licensing and branding, technology and cybersecurity, real estate, healthcare, entertainment and music, sports, consumer products, insurance, retail, environmental, and government. With a reputation for winning bet-the-company litigation, the firm is frequently engaged to resolve pivotal issues before trial, and other law firms bring in Miller Barondess when their clients need a trial or appellate team.
About Cohen Johnson Bartlett LLP (CJB):
CJB is a boutique, Los Angeles-based law firm specializing in complex business and real estate transactions, business and real estate litigation and arbitration, and employment matters. CJB prides itself on developing and implementing creative, flexible, and cost-effective solutions for our clients. The firm’s founders, Theodore (Ted) Cohen, Stuart Johnson, and Joseph Bartlett, are seasoned attorneys with decades of experience providing business owners, C-Suite executives, and investors with result-oriented, strategically focused legal advice on significant business, investment, and litigation matters.