Shareholder and Partnership Disputes

Various circumstances can lead to shareholder disputes in public and private corporations, including fraud, mismanagement, misleading or withholding information, unfair termination, salary issues, and bad faith.

In small, closely held corporations, disputes commonly arise over management control, shareholder agreements, capitalization, and minority shareholder oppression, forced buyouts, and valuation of minority interests. These disputes can take place among members or managers of an LLC as well.

When majority shareholders unfairly take advantage of minorities, they may be held liable for their oppressive conduct. State laws require majority shareholders in public or private corporations to act in good faith, loyalty, fair dealing, and full disclosure when dealing with the minority shareholders.

Victims of corporation shareholder disputes may be eligible for compensation for their losses, which most commonly involves the purchase of their stock or share for fair market value and more.

Partnership disputes most commonly arise when there is oppression of minority interests, valuation of partnership interests or capital investments, trade secrets, and proprietary information, breaches of confidentiality, and non-compete agreements.

Mr. Lamothe has extensive experience in shareholder/partnership litigation including a recent significant judgment in the breakup of an LLC involving allegations of breach of fiduciary duty by the managers and members of the LLC.

Because of the complex issues that arise out of shareholder and partnership disputes, it is important to seek the help of an experienced and qualified business litigation attorney who can help you resolve your case successfully. Contact us today for a free consultation.