Deann Totta v. CCSB Financial Corp.

CourtMissouri Court of Appeals
DecidedJune 11, 2024
DocketWD86312
StatusPublished

This text of Deann Totta v. CCSB Financial Corp. (Deann Totta v. CCSB Financial Corp.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deann Totta v. CCSB Financial Corp., (Mo. Ct. App. 2024).

Opinion

IN THE MISSOURI COURT OF APPEALS WESTERN DISTRICT DEANN TOTTA, et al., ) ) Appellants, ) ) v. ) WD86312 ) CCSB FINANCIAL CORP, et al., ) Filed: June 11, 2024 ) Respondents. )

Appeal from the Circuit Court of Clay County The Honorable Timothy J. Flook, Judge

Before Division One: Lisa White Hardwick, P.J., and Alok Ahuja and Anthony Rex Gabbert, JJ. DeAnn Totta, Park GP, Inc., and Jefferson Acquisition, LLC (collectively

“Totta”) sued CCSB Financial Corp. and the members of its 2020 Board of

Directors (collectively “CCSB”) for defamation in the Circuit Court of Clay

County. The circuit court granted CCSB’s motion for summary judgment, and

Totta appeals. Because the record establishes that the purportedly defamatory

statements are either constitutionally protected statements of opinion, or are

substantially true, we affirm the circuit court’s grant of summary judgment to

CCSB.

Factual Background Totta is an officer of Park and of Jefferson. Park is a CCSB shareholder.

CCSB is the holding company for Clay County Savings Bank, a Missouri- chartered financial institution. CCSB’s stock is publicly traded in the over-the- counter market. At the times relevant to this litigation, Totta was not employed

by or affiliated with CCSB, and did not have authorization to sign for CCSB.

In 2011, Totta obtained lists of the Non-Objecting Beneficial Owners (“NOBOs”) of CCSB stock. NOBOs are shareholders who have agreed to permit

financial intermediaries to disclose the shareholders’ names and addresses to the

securities’ issuer. Totta obtained the NOBO lists for CCSB through Broadridge

Financial Solutions, Inc. Broadridge is a third-party corporate and financial

services firm which had been retained by CCSB to assist it with shareholder

relations. On three occasions in 2011, Totta filled out and submitted “NOBO Request

Forms” to Broadridge, requesting a NOBO list for CCSB. In the first box on the

NOBO Request Forms, Totta identified the “Company” as to whom information was requested as “CCSB Financial Corp,” and provided CCSB’s CUSIP number.

The Request Forms named Totta as the requesting party, and identified her as a

“VP” with Jefferson. The forms requested that the NOBO list be shipped and

billed to Totta at Jefferson’s address in North Kansas City. Directly above the box

in which Totta’s signature appeared, the forms stated: “***Request must be

signed and dated by an authorized signer of the company***.” Although Totta was not then an authorized signer for CCSB, Broadridge

sent her NOBO lists for CCSB in response to her requests.

Mario Usera is CCSB’s President and a member of its Board. Before CCSB’s 2012 shareholder meeting, Usera discovered that a representative of

Jefferson and Park was communicating directly with CCSB shareholders to

propose alternate candidates for CCSB’s Board of Directors. Usera alerted

2 Broadridge. On January 25, 2012, a Broadridge representative e-mailed Usera, and acknowledged that Broadridge had released NOBO information to Totta.

The e-mail stated that Totta’s NOBO request form “represented Deann Totta as

the ‘authorized signer of the company.’” In a further e-mail on February 7, 2012, a Broadridge Vice President wrote

to Usera “to again apologize for our unauthorized release of your company’s Non-

Objecting Beneficial Owner (NOBO) information.” The e-mail stated that the list

had been the subject of an “unauthorized release of information” to Totta.

Broadridge’s e-mail stated that “[t]he Request Form was signed by Ms. Totta as

an authorized, requesting signatory.” Broadridge stated that its standard procedure was to call an officer of the securities-issuing company to verify that

the request for shareholder information was authentic, and was authorized. In

connection with Totta’s request, however, Broadridge “incorrectly contacted Ms. Totta as the requestor, rather than [CCSB], as the issuing company, for validation

of the requestor and shipping address.” Broadridge’s February 7, 2012, e-mail

also stated that it was “notifying Ms. Totta, as an unauthorized requestor of

information, that she and/or her company are to destroy all NOBO lists obtained

from Broadridge.”

Broadridge separately corresponded with Totta, and provided copies of that correspondence to Usera. In a letter dated February 14, 2012, a Broadridge

Vice President wrote:

Based on the NOBO Request Forms you submitted to Broadridge, we mistakenly provided you with unauthorized NOBO lists. As you are not an officer of CCSB, nor authorized to request a NOBO list on CCSB’s behalf, you are now in receipt of confidential CCSB shareholder information. As you know, the information

3 contained within the NOBO lists and media is deemed confidential information, contains personally identifiable information[,] and should be destroyed immediately. The Broadridge Vice President sent a further letter to Totta on February 22, 2012, which repeated Broadridge’s assertion that Totta’s access to CCSB

NOBO lists was unauthorized, and repeated its demand that Totta immediately

destroy the lists, and all media on which information from the lists was stored. The February 22 letter noted that “[i]t has now come to our attention that an

additional communication was sent to CCSB shareholders utilizing the NOBO

information, after my voice mail and letter to you.” Totta did not respond to Broadridge’s letters, and did not destroy the

NOBO information, but instead maintained it for future use by Park and/or

Jefferson. CCSB held an election for two new board members at its annual

shareholder meeting in late January 2020. In late 2019, CCSB’s Board of

Directors sent a proxy statement to shareholders recommending two individuals

for election to the Board, who had been nominated by the Board’s Nominating

Committee. In response, Park issued a statement recommending two other

candidates, one of whom was Totta. On January 6, 2020, the Board sent a letter to the shareholders they

believed had not yet voted in the election, which attached a report prepared by

the Board’s Nominating Committee. The letter and attached report contained

information about the procedure for proxy voting; renewed the Board’s

recommendation of particular Board candidates; and responded to Park’s proxy

statement by opposing Park’s nominees. At issue in this suit are the following

4 statements contained in the Nominating Committee report attached to the Board’s January 6, 2020 letter, opposing Totta’s candidacy:

▪ In the case of Ms. Totta, the Company firmly believes she has committed fraud or, at the very least, misrepresented herself in attempts to obtain confidential shareholder information that should disqualify her from being a director of this Company. In 2011, Ms. Totta obtained the Company’s Non-Objecting Beneficial Owner (NOBO) information directly through Broadridge Financial Solutions, Inc. Broadridge Financial Services [sic], Inc., had advised in a letter that she was provided with this list because she indicated on the form that she represented CCSB Financial Corp. She was subsequently told in writing by Broadridge Financial Services [sic], Inc., that she was in receipt of confidential shareholder information and was asked to return and destroy the information. The Company has not been able to verify that the information was destroyed or returned.

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