Testimony from Vice President John Drum Supports AMFI’s Trial Win in Delaware Court of Chancery

November 6, 2026

Analysis Group was retained on behalf of AMFI and its directors, the defendants in a dispute brought by a shareholder of AMFI Class A stock. AMFI is a holding company that arose out of the restructuring of American Fidelity Life Insurance Company and its subsidiaries. As part of the restructuring, AMFI issued Class B non-voting stock and later transferred that stock to AMFI subsidiaries.  Starting on its 2019 balance sheet, AMFI departed from historical practice and separately listed the Class B shares. Upon learning of the Class B shares, the plaintiff filed a class action alleging that AMFI failed to maintain a valid stock ledger and thus breached Delaware corporate law and that the directors breached their fiduciary duties. The plaintiff also alleged that the Class B shares were improperly issued and invalid.

An Analysis Group team led by Managing Principal Kevin Gallagher, Vice President Sofia Hussain, and Manager Erik Martino supported Vice President John Drum, who testified at trial as a damages expert for AMFI.  Mr. Drum’s testimony rebutted plaintiff’s dilution claim, demonstrating that no economic event occurred during plaintiff’s ownership that could have altered plaintiff’s economic interest in AMFI.  In addition, Mr. Drum’s testimony rebutted plaintiff’s damages expert, demonstrating that, even assuming the Class B shares had a dilutive effect, plaintiff’s expert materially overstated that effect. 

After a three-day trial, a judge in the Delaware Court of Chancery decided in favor of the defendants on all claims.