Category Archives: Shareholder Disputes
What Can A Minority Shareholder Do If Their Rights Are Being Violated?
A minority shareholder of a closely-held Florida corporation must put their trust in the faith of the majority owners. By definition, minority shareholders have little direct influence over the day-to-day operations of the company. This raises an important question: Can minority shareholders take action to stop their rights from being violated? The answer is… Read More »
U.S. Appeals Court: Google Must Face A Shareholder Lawsuit
According to reporting from the Insurance Journal, Alphabet Inc.—the parent company of Google—must face a lawsuit from shareholders. Overturning the decision of a lower court, the United States Court of Appeals for the Ninth Circuit found that the plaintiff’s claims raised a “strong inference” that Google’s top leadership improperly concealed securities risks. Here, our… Read More »
Class Action Shareholder Lawsuit Filed Against Florida-Based PureCycle Technologies
According to a report from Yahoo Finance, a class action shareholder lawsuit has been filed in the United States District Court for the Middle District of Florida against PureCycle Technologies. Based in Orlando, FL, PureCycle Technologies is a recycling processing company. Representatives for the plaintiffs allege that the company made material misrepresentations to shareholders…. Read More »
Five Examples Of Corporate Violations That May Warrant A Shareholder Derivative Lawsuit
Through a shareholder derivative suit, an individual shareholder or group of shareholders can bring a claim on behalf of the company. Most often, shareholder derivative lawsuits are filed against someone close to the corporation, such as an officer, director, or other insider. Here, our West Palm Beach shareholder dispute attorneys highlight five specific examples… Read More »
Minority Shareholders File Lawsuit Against Tampa Bay Rays Owner Stuart Sternberg
According to a report from the Tampa Bay Times, several minority shareholders of the MLB’s Tampa Bay Rays are filing a shareholder oppression lawsuit against Stuart Sternberg, the team’s majority owner. The plaintiffs in the shareholder dispute allege that Mr. Sternberg improperly tried to negotiate a secret deal with a group of outside investors…. Read More »
Shareholder Dispute: Former Brooks Brothers Minority Shareholder Sues Over Alleged “Bad Faith”
According to a report from The New York Times, a former minority shareholder of Brooks Brothers has filed a shareholder lawsuit against the company on the grounds that it used bad faith practices. The company was one of many financial casualties of the COVID-19 pandemic—it filed for bankruptcy protection in July of 2020. In… Read More »
Can A Shareholder Sue An Officer Or Director Of The Corporation?
As a shareholder, you are forced to place a significant amount of trust in the hands of the people who make the day-to-day decisions at the company, including corporate officers and corporate directors. You may be wondering: Can I file a lawsuit if I believe my rights have been violated? The answer is ‘yes’—shareholders… Read More »
Shareholder Lawsuit: CoreCivic Settles Shareholder Dispute For $56 Million
According to a report from The Denver Post, CoreCivic, one of the largest private prison companies in the United States, has agreed to pay $56 million as part of a settlement with shareholders. The underlying dispute centered around a significant drop in the company’s stock price in 2016—and what corporate directors did or did… Read More »
Shareholder Vs. Shareholder: Individual Or Derivative Lawsuits?
As you may know, a shareholder can sue a company and its owners or directors, for mismanagement of the company, or for dereliction of their fiduciary duties to the company. But what about one shareholder or partner (in a partnership) suing another? Do those cases have to be brought as derivative actions—that is, on… Read More »
Federal Judge In Miami Tosses Out Shareholder Lawsuit Against Norwegian Cruise Lines
According to a report from Reuters, a Miami, FL-based federal judge has dismissed a shareholder lawsuit against Norwegian Cruise Lines. A group of shareholders were pursuing a proposed class action claim against the South Florida headquartered company on the grounds that its top executives were intentionally and improperly downplaying the risks of the COVID-19… Read More »
Shareholder Disputes In Florida: Are Mandatory Arbitration Provisions Enforceable?
A shareholder agreement is a contract between the stakeholders of a corporation. When properly drafted, it should define a shareholders’ rights, privileges, and responsibilities. Should a shareholder dispute arise, the first place to look is the shareholder agreement. In it, you may find a mandatory arbitration provision. This raises an important question: Are forced… Read More »
How to Deal With the Early Stages of a Shareholder Dispute
Shareholder disputes can arise for a wide range of different reasons—from fundamental disagreements about the current direction of the company to allegations of serious misconduct by a corporate officer, corporate director, or the majority shareholder. With shareholder disputes, partnership disputes, and other internal business disputes, a proactive approach is always best. There are steps… Read More »
Shareholder Disputes: Inspection of Corporate Financial Records
Shareholders have valuable legal rights under Florida state law. Among other things, a minority shareholder’s rights include the ability to access and inspect certain corporate financial records. Under Florida Statutes § 607.1602, shareholders have a general right to inspect otherwise sensitive financial statements and accounting information with written proper notice. However, a shareholder’s right… Read More »
How to Resolve a Shareholder Dispute When There is No Shareholder Agreement
As described by the Cornell Legal Information Institute, a shareholder agreement is a binding contract between the shareholders of a corporation. While they provide clarity and legal protection, a shareholder agreement is optional. This raises an important question: How is a dispute resolved if there is no shareholders’ agreement? Here, our Miami shareholder dispute… Read More »
Florida Law: Corporations Prohibited from Amending Bylaws to Undermine a Shareholder’s Contractual Rights
Minority shareholders are in an inherently vulnerable position. By definition, they lack the power to exert direct control over the company. Minority shareholders must put a significant amount of trust into the hands of a corporation’s board of directors. Shareholders also have some important legal protections. Florida law prohibits a corporation from amending its… Read More »
Shareholder Deadlock Disputes: An Overview
A closely held corporation is a company with a limited number of shareholders. In some cases, a closely held corporation may have as little as two shareholders. Shareholders deadlocks are among the biggest threats to smaller companies. A deadlock can cause serious problems for a corporation—potentially even grinding operations to a halt. Here, our… Read More »
Shareholder Derivative Actions in Florida: What is Demand Futility?
A shareholder derivative action is a suit brought by a shareholder on behalf of the corporation. In most cases, the lawsuit is filed against a corporate officer, director, or other insider accused of misconduct. Shareholder derivative claims are complicated. There are strict rules and standards that must be satisfied to bring a successful shareholder… Read More »
Closely Held Corporations and Shareholder Oppression Claims
The Internal Revenue Service (IRS) defines a closely held corporation as an entity that has more than 50 percent of its outstanding stock owned by five or fewer people. In many cases, a single individual has a majority controlling stake in a closely held corporation. By definition, majority shareholders have significant control over the… Read More »
Five Things to Know About Shareholder Derivative Suits
As a shareholder in Florida, you have important legal rights. If your rights are violated, you can take legal action to protect your financial interests and hold the responsible parties accountable. Shareholder derivative actions are one of the most common but least understood types of shareholder lawsuits. Here, our Miami shareholder dispute attorneys highlight… Read More »
