An appellate court in New York has allowed the state Attorney General to proceed with litigation charging a parent nonprofit corporation and several of its officers and directors with misapplying the surplus funds of a subsidiary for the benefit of other affiliates. It has reversed a trial court decision that had dismissed the claims. The Lutheran Care Network is the sole member of several affiliates, including Coburg Village, a private-pay senior living facility in the Town of Clifton Park. In 2014, the Care Network voted to replace the boards of directors of Coburg and other affiliates with members of its own board of directors. After a dispute between the residents of Coburg and the Care...