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Blogs > Shareholder Disputes in New Jersey

Preparing For Business Divorce Litigation

Jun 03, 2020

Majority Shareholder Threats May Backfire

If you are having an ongoing issue with your business partner and you attempted to discuss it, how did he react when you started raising concerns about the manner in which he was running the company? If he is like many entrenched majority owners who have let their power and authority go to their heads, his initial reaction was a threat. » Read More

Mar 27, 2020

While Filing a Shareholder Oppression Claim Might Be the Last Thing on Your Mind Right Now Due to the COVID-19 Virus, Waiting to File Could Potentially Prejudice Your Valuation

The world has changed. The COVID-19 virus is impacting everything and everyone, and certainly only the most fortunate of businesses will not be adversely impacted. If you as a business owner have reason to believe that you are an oppressed minority shareholder with the right to file suit against your fellow shareholder(s), it is easy to conclude that you perhaps should hold off on filing that shareholder oppression claim, at least until some semblance of normalcy has been restored. » Read More

Jan 21, 2020

Have Your Business Divorce Attorney Retain a Valuation Expert on Your Behalf – Don’t Do It on Your Own

A year-and-a-half ago, on June 5, 2018, I wrote “A Valuation Expert in Business Divorce Litigation Can Help Early On” about the value of retaining a valuation expert early on. Knowing what your shares may be worth can be an invaluable tool when approaching negotiations relating to being paid for those shares, or in determining whether or not shareholder dispute litigation may be cost-effective. » Read More

Jan 13, 2020

Potential Alternatives to Shareholder Dispute Litigation in Your Business Divorce

Shareholder dispute litigation may often be an effective way to achieve a remedy for wrongdoing committed by the majority, such as getting paid for your shares. However, filing litigation against your business partners may not be the most cost-effective way of obtaining such relief. » Read More

Sep 23, 2019

When To Involve a Customer or Vendor in Business Divorce Litigation (If Ever)

In a previous blog post, “Don’t Let Ego – Yours or Your Attorney’s – Get in the Way of a Settlement,” I made a passing reference to the strategy of taking discovery (including depositions) from company customers and vendors in business divorce litigation. » Read More

Jun 11, 2019

Bad Faith Is Not Necessary for a Business Divorce

Shareholder oppression – at least in New Jersey – does not necessarily mean you must prove that your business partner is acting maliciously.  In fact, he could be a wonderful human being who honestly believes that he is doing the right thing for the business at all times and would never intentionally hurt you or the business.  » Read More

Oct 25, 2018

Is Secretly Recording Your Business Partner Ever a Good Idea in New Jersey?

Many clients who come in to discuss a possible business divorce action are already anticipating obstacles to their own case.  Having a foresighted, prepared client is wonderful.  But when those clients take matters into their own hands before even coming into my office, sometimes they have harmed more than helped their own case. » Read More

Oct 04, 2018

Prosecutors Are Rarely Interested in Business “Theft” Cases

Many business divorce cases start because one partner is improperly taking money from the business.  Such behavior can come in many different forms, including a majority shareholder wildly overcompensating himself, running personal expenses through the business, or having family members on the payroll with a no-show job.  » Read More

Jun 05, 2018

A Valuation Expert in Business Divorce Litigation Can Help Early On

Not surprisingly, business divorce litigation can be quite costly.  Whether this cost is “worth it” is not always so easy to figure out.  If a minority shareholder or LLC member in New Jersey has an interest valued at $600,000, spending $50,000 – $100,000 in legal fees may be warranted to achieve a buy-out.  » Read More