Sheppard secured a denial of a motion for a temporary restraining order (TRO) and preliminary injunction brought against client Cal AI by its former Chief Marketing Officer and member, Beydoun Hussein. Cal AI is the developer of a revolutionary AI-powered health and fitness app.
In a 2026 action filed in New York county Supreme Court (Commercial Division), Hussein asserted a series of direct and derivative claims against Cal AI and its founders. Hussein alleged that he held an equity interest in the company, drove its successful marketing campaign and rapid growth, but was later forced out. He also alleged Cal AI and its founders violated their fiduciary duties and deprived him of substantial distributions and equity worth tens of millions of dollars.
In March 2026, Hussein filed a TRO and a separate preliminary injunction motion seeking to unwind the proposed sale of the business to MyFitnessPal, halt the company's operations, halt distribution of sale proceeds, deprive the founders of their compensation under the deal and pursue expedited discovery. If granted, the motions threatened to upend a vital transaction for the client as well as its ongoing day-to-day operations.
Sheppard was brought in as lead counsel on the eve of the TRO hearing and, following that hearing, the Court denied all relief. After a full briefing on the preliminary injunction motion and a hearing, the Court denied an injunction and any expedited relief. The Court agreed with Sheppard that there was "no legal precedent" supporting any relief Hussein sought and that he had "absolutely" failed to establish any basis for preliminary relief. The Court also, based on Sheppard's jurisdictional argument, ordered the litigation to be transferred and joined with an earlier lawsuit that CAL AI had filed against Hussein.
The Sheppard team was led by Paul Werner, who also argued the motions, and included Imad Matini, Hannah Wigger, Angelo Pavone, Ryan D'Ercole, Meredith Lerner and Clare Burgess.
The case is Beydoun v. Viral Development, LLC et al., 650207/2026 (Sup. Ct., N.Y. Cnty., Com. Div.)
Click here to read the decision.