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Blogs > Shareholder Disputes in New Jersey

Litigation

Apr 18, 2019

Competing Companies as Oppression

When majority owners of a closely-held business engage in conduct that constitutes shareholder oppression, it comes in all shapes and sizes. One wrongful act that seems to be occurring more frequently is the creation of a competing company that excludes one or more minority shareholders. » Read More

Mar 18, 2019

Minority Shareholders Don’t Always Have a Right to Information

There appears to be an uptick in the filing of meritless corporate shareholder and LLC member oppression claims in New Jersey.  Not everything that majority shareholders do that upsets a minority owner is worth spending legal fees to pursue.

When the only allegations one can make are a failure to keep an absentee shareholder fully informed of all business transactions, and a failure to obtain that minority shareholder’s consent to such transactions, that alone is rarely a recipe for successful litigation.  » Read More

Jan 26, 2017

Many Discovery Tools Exist To Find Emails To Prove Shareholder Oppression

I have noted many times on this blog that emails often prove shareholder oppression cases.  It can be fairly easy for majority shareholders who are careful, and seek legal advise beforehand, to mask their true intent when attempting to “freeze out” a minority shareholder.  » Read More

Dec 13, 2016

Some Pitfalls of Negotiating Your Own Buyout in a Business Divorce

More and more shareholder dispute litigations are settling earlier than ever before, which is obviously a good thing for anyone who does not want to pay a fortune in legal fees (i.e., everyone).  The reason is simple – in all but a handful of business divorce cases, it is obvious to everyone involved that the oppressed minority shareholder will wind up on the receiving end of a buyout.  » Read More

Oct 10, 2016

Court-Appointed “Tiebreakers” In a 50/50 Ownership Setting

When two people start a company, neither wants to give control to the other, so ownership is usually split 50/50.   This sounds like a great idea at the outset, when everyone is on the same page, and there is usually no other practical way to proceed.  » Read More

Aug 31, 2016

What To Do If Filing Shareholder Dispute Litigation Might Potentially Harm The Company

To negotiate – or to sue?  That is the question when the decision to sue might potentially hurt the company.

A minority shareholder (or LLC member) in New Jersey is often faced with a difficult choice.  Confronted with mounting evidence of shareholder oppression and improper conduct by the majority, minority shareholders may have the right to sue and attempt to force a buyout of their shares.  » Read More

Jul 27, 2016

Steps a Company Can Take to Inoculate Itself Against Shareholder Dispute Litigation

As discussed many times on this blog, shareholder dispute litigation can be extremely costly and terribly disruptive to company operations.  From the company’s point of view, it should be avoided if at all possible.  Once an oppressed minority shareholder complaint is filed, or is about to be filed, it is often too late to avoid.  » Read More

Jun 20, 2016

Oppressed Minority Shareholder Litigation – Choosing a Lawyer

Many times, minority shareholders pursuing their shareholder oppression rights, as well as majority shareholders being sued for minority shareholder oppression, feel the important thing to look for in an attorney is experience dealing with the particular industry that the company occupies.  » Read More

Mar 31, 2016

Sometimes Shareholder Dispute Litigation Cannot Be Avoided

I have written extensively on this site about ways to resolve shareholder disputes before they turn into expensive shareholder dispute litigation.  The cost of such litigation, as anyone who has experienced one knows, can be quite significant.  However, sometimes there is very little choice, and filing an oppressed minority shareholder suit is preferable to taking no action at all. » Read More

Apr 14, 2014

Pros & Cons of Alternative Dispute Resolution in Shareholder Dispute Litigation

As many of you have read here before, the New Jersey Limited Liability Company Act now includes recovery for minority member oppression. Those remedies cannot be waived, as a matter of law. However, the parties to an LLC’s operating agreement (or a corporation’s shareholder agreement) can agree to an alternate dispute resolution (“ADR”) mechanism in advance, impacting the forum in which these issues will be decided. » Read More