Free Answer to Complaint - District Court of Delaware - Delaware

Case 1 :08-cv-00456—GI\/IS Document 4 Filed 08/14/2008 Page 1 of 3
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
LEON SEGEN, )
Plaintiff g
v. g C.A. No. 08-456 GMS
OPTIONSXPRESS HOLDINGS, INC., g
a Delaware corporation, )
Defendant. g
ANSWER
Defendant OptionsXpress Holdings, Inc. ("OptionsXpress") responds as follows
to the complaint of Leon Segen ("Segen"):
l. OptionsXpress is without knowledge or information sufficient to form a
belief as to the truth of the allegations of Paragraph 1, and therefore denies same.
2. Admitted.
3. Admitted.
4. OptionsXpress denies the allegations as stated in the first sentence of
paragraph 4, except admits that on or about April 23, 2008, Segen’s counsel made a
written demand on the board of directors of OptionsXpress requesting the investigation
and return of any profits realized by G Bar Limited Partnership and James Gray in certain
transactions. The allegations in the second sentence of paragraph 4 are admitted.
5. Denied as stated. Admitted that the April 23, 2008 letter led to a review of
the specified transactions and the payment of $704,741.78 to the Company.
‘ 6. OptionsXpress denies the allegations as stated in the first sentence of
paragraph 6, except admits that on or about May 31, 2008, Segen’s counsel made a

Case 1 :08-cv-00456—GI\/IS Document 4 Filed 08/14/2008 Page 2 of 3
written demand on the board of directors of OptionsXpress requesting the investigation
and return of any profits realized by Ned W. Bennett in certain transactions. The
allegations in the second sentence of paragraph 6 are admitted.
7. Denied as stated. Admitted that the May 31, 2008 letter led to a review of
the specified transactions and the payment of $401,876.24 to the Company.
8. The allegations in the first sentence of paragraph 8 are admitted. The
allegations in the second sentence of paragraph 8 are denied as stated. Admitted that the
plaintiffs’ demand led to payments to the Company.
9. Paragraph 9 states legal conclusions to which no response is required. To
the extent a response is required, OptionsXpress denies that Plaintiff is entitled to the fee
sought. OptionsXpress does not dispute that Plaintiff is entitled to a reasonable fee
award for writing the two letters, but Plaintiff has rejected the reasonable fee award
offered by OptionsXpress and demanded a fee award that is grossly disproportionate to
the work performed by Plaintiff s attorneys.
10. Denied.
ll. Paragraph ll states legal conclusions to which no response is required.
To the extent a response is required, denied.
ADDITIONAL DEFENSES
Without admitting or acknowledging that OptionsXpress bears any burden of
proof as to any of them, OptionsXpress asserts the following additional defenses.
OptionsXpress hereby reserves the right to amend its reply to assert additional defenses
that become available or apparent during the course of this litigation.
2

Case 1 :08-cv-00456—GI\/IS Document 4 Filed 08/14/2008 Page 3 of 3
First Additional Defense
Segen fails to state a claim upon which relief may be granted.
Second Additional Defense
The amount of attorneys’ fees sought by Segen is disproportionate to the effort
expended.
Third Additional Defense
Segen and his counsel will be unjustly enriched if he is awarded the amount of
attorneys’ fees sought.
WHEREFORE, OptionsXpress respectfully prays for an order:
l. For judgment in favor of OptionsXpress;
2. The costs incurred in this action, including reasonable attorneys’
fees;
3. Such other relief as the Court may deem just and proper.
MORRIS JAMES LLP
Léewis H. Laz£€?(#2S 74)
Katherine J. Nei irk (#4129)
MORRIS JAMES LLP
500 Delaware Avenue, Suite 1500
Wilmington, Delaware 19801-1494
302.888.68OO
302.57l.l75O (fax)
llazarus@mo1risj ames.com
kneikirk@morrisj ames.com
Attomeys for OptionsXpress Holdings, Inc.
Dated: August 14, 2008
1875148 3

Case 1:08-cv-00456-GMS

Document 4

Filed 08/14/2008

Page 1 of 3

Case 1:08-cv-00456-GMS

Document 4

Filed 08/14/2008

Page 2 of 3

Case 1:08-cv-00456-GMS

Document 4

Filed 08/14/2008

Page 3 of 3