Melanie cooper was hired to serve as chief executive officer of lexington home for the aged, inc. , a corporation that ran the lexington home for the aged nursing home. When ms. Cooper took over as ceo, the nursing home had been in financial trouble for decades and only had stayed open because of donations from private foundations and some financial help from the local government. The financial problems became worse while cooper was serving as ceo. In addition, the home repeatedly was cited for violations of the state health code at a rate three times the average for the state. Billing records and patient medical records were disorganized and financial information was not tracked with the exception of a monthly review of the bank statements. As a result, the home failed to collect over $500,000 owed to it by patients. Two patients died under suspicious circumstances and shortly thereafter the nine-member board of directors voted to close the home. Several shareholders sued cooper, alleging that they would have received more of a payout in the closure of the company if cooper had been more diligent as ceo. Did cooper breach her duties as an officer of the corporation?.



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