There are many strategies to resolve a California shareholder dispute. The Watkins Firm is often hired to protect a minority shareholder’s interests in a San Diego corporation, and adds almost four decades of proven experience to your side of the equation.
California and Federal Laws Protect Shareholders
Recent changes to federal law and California corporate law provide additional standing and protections for minority shareholders. The experienced corporate and shareholder litigation attorneys at the Watkins Firm provide sound advice and counsel based upon almost 40 years of experience and expertise in these matters. We have represented clients resolving derivative lawsuits and shareholder disputes in San Diego for decades. If you are a shareholder in a corporation, and you are concerned about the actions of managing shareholders, access to critical corporate information and accounting records, or the direction of the company we invite you to contact us for a free and substantive consultation at 858-535-1511.
Our Unique Approach to Resolving Shareholder Disputes
There are several strategies to resolve a California shareholder dispute. Our unique approach to litigation is designed to resolve corporate and business legal issues such as a shareholder dispute in an efficient and cost-effective manner. We document and develop a sound foundation for our client’s position, and then work to open leveraged but productive negotiations in order to accomplish their goals. When this isn’t possible, there are effective alternative means to resolve a dispute before heading to trial including mediation and arbitration.
The Watkins Firm is uniquely positioned to represent your interests from start to finish in a shareholder dispute, and our team will represent you at every step of the process including:
- Negotiations
- The filing or defense of a lawsuit
- Settlement Conferences, Mediation and Arbitration
- Trial in a San Diego or California Court
What is a Derivative Lawsuit?
When a shareholder is concerned about the direction of the company or the actions of the management team, it may be necessary to bring a “derivative lawsuit.” A derivative lawsuit is an action against the managing interests of the company on behalf of the corporation. This complex legal strategy requires extensive legal skill and expertise, and our clients value the Watkins Firm’s decades of experience and track record of success in derivative lawsuits and shareholder disputes in San Diego.
Pro-Tip: “we’ve, we’ve had so many shareholder fights where, a company group of friends or a group of friends who know friends, maybe 30 people invest in a company and it’ll be doing well, but not great. And the investors, the shareholders won’t be receiving disclosures, or they will be receiving them, but they sort of don’t add up. And then they do an investigation and they come to an experienced law firm like ours and they say, ‘well, let’s, let’s get in there seeing the books and records,’ and you get some pushback from the company. And that’s when all the hairs in your neck stand up and you come to the Watkins firm and we file a motion. And we discover through our due diligence that the company’s doing very well, and that they also formed an offshore corporation of the same name. And they’ve taken all the assets and they’re all driving Rolls-Royces. So this has happened more times than I can say, because it just does happen. Nobody fights over anything unless there’s money involved. If it’s just doing okay, they would tell the truth and say, it’s all great. But if that big money offer comes in the door and they have a way of keeping it for themselves, it’s very tempting for human nature to turn that down.
We’re talking about breach of the shareholder agreement and most importantly, lack of access. What can we do as an attorney to help protect our clients contract in their shareholders agreement and their access to information? Well, we like to say, if it’s off a penny, it’s off a million. So we look at the financial disclosures you’ve given, and if they don’t add up or doesn’t seem straightforward, we suggest you demand for documentation. And if they don’t give it, that’s sort of like them pleading the fifth, you know, something’s wrong when they’re not willing to give their investors, their owners full access, full transparency into what’s going on with the company.
So that sense that you have that something’s just not right. That should also be a sense that maybe I should get some help. And you should do it right away. because, when shareholder fraud or a shareholder breach happens, it’s almost always for a purpose. There is an immediate opportunity for management, and its usually about to go down, and it’s probably going to involve a lot of money. They usually won’t do it unless it’s worth something.
This is about money and timing . If let’s say you don’t have a shareholder agreement, or you have a weak shareholder agreement and management has broad discretion to do a lot of things, and they’re getting ready to do some questionable things, to make a big profit. And you come along and say, wait a minute, I think something’s wrong here. And you pose an objection. Well, before you file a lawsuit, this opportunity that management has is still there. So if you are the squeaky wheel right away, before they go forward with whatever they’re doing, then you may profit from that. But if you’re not, then it’ll just happen. And instead of sharing in the profits, you’ll be fighting to claim you had rights to get some money back.” – Dan Watkins, Founding Partner
Resolve a California Shareholder Dispute Quickly and Cost-Effectively
Are you searching for attorneys with extensive experience to resolve a California shareholder dispute? Your Watkins Firm attorney will apply our unique approach to resolve the situation quickly and cost-effectively. We invite you to review our podcast Episode 11 – Business Dispute Resolution as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
Meet Daniel Watkins:
Daniel W. Watkins is a true people person who sincerely listens. He cares deeply about what others are going through. Dan enjoys digging into the facts and finding creative solutions to problems. He contributes his insights candidly and constructively.
Dan’s interest in people make him deeply invested in every relationship and his exuberant personality makes him a true litigator. Dan fights for his clients with a fierce and calculated commitment.
Dan has practiced in the areas of business, medical practices and healthcare business, high tech/science, real estate and employment defense law since 1987. He is a trusted litigation strategist and true trial attorney with over 50 jury and bench trials to his credit. Dan has successfully represented both large companies and individuals and achieved substantial victories in well-publicized trials throughout California and the U.S.
He is experienced in business and corporate formation and administration, as well as all forms of alternative dispute resolution, including binding arbitration and mediation.
THE ROAD TO BECOMING A BUSINESS LAWYER AND LITIGATOR
Dan has almost 40 years of experience working with, for and against some of the largest insurance companies in the country. He has successfully tried and litigated cases in the areas of Healthcare Compliance, Commercial Litigation, Unfair Business Practices, Fraud, Breach of Contract, Battery, Premises Liability, Product Defect, Medical Malpractice, Discrimination, Sexual Harassment, Construction Defect, as well as Unfair Competition, Defamation, and Trade Secrets.
In December 2003, Dan commenced litigation against Health South Surgery Centers-West, Inc and its’ subsidiaries, exposing the company’s extensive mismanagement and misconduct of its’ surgery centers. Dan has also been asked by some of California’s largest municipalities and corporations to conduct legally required investigations into matters involving alleged employment discrimination and harassment.
