What is the best way to resolve a lawsuit or dispute with an investor in San Diego?  The Watkins Firm has decades of experience and expertise in investor and investment disputes, and there are many factors to consider.  The first question is what is the underlying relationship between the company and the investor?  A dispute or lawsuit with a business partner or investor in an LLC or corporation often involves family members or close friends and the work dispute has jaded a once positive and close relationship.  How your attorney handles these delicate situations will go a long way to deciding the outcome, and protecting your interests along the way.

Key Takeaways Regarding a Lawsuit or Dispute with an Investor in California:

• A lawsuit or dispute involving an investor or shareholder in California is almost always about money.
• Look for attorneys with an extensive track record across decades of successfully protecting investors, and resolving corporate and business disputes.
• If it’s “off by a penny, it’s off by a million.”  If you get that sense that something is amiss, it probably is, and you need to take fast action to protect your investment and interests.

A Lawsuit or Dispute with an Investor in California is About Money

After more than 40 years of experience resolving a dispute or lawsuit with an investor in San Diego or anywhere in California I can tell you the central issue is always money.  What is the nature of the dispute?  Is the dispute centered upon questions of how the company is being operated, compensation for majority stakeholders or how the money is supposed to be divided? Is there any concern about fraud, theft or commingling of funds or assets?  Who has been responsible for keeping the books, and how accurate and up-to-date are the records?

The Steps to Resolving an Investor Dispute

Our experienced dispute resolution attorneys get to the core issue(s) and go to work creating a thorough, well-documented chronology that captures all facts, communications and other evidence, as well as a mastery of available damages in order to gain leverage for negotiation.  We work to establish a productive working atmosphere that is conducive to effective negotiations and ultimately a settlement which reflects the goals and objectives of our client. The Watkins Firm employs a unique strategy for resolving disputes which allows us to resolve the vast majority of these matters through effective, leveraged negotiation.  This is the fastest, and least expensive path to protect our clients goals and objectives.

Mediation is an effective venue for resolving an investor dispute.  Mediation is confidential and keeps your financial and business details confidential and out of the public record. Those disputes which cannot be completely resolved through negotiation are most often settled in mediation.  The next step is either arbitration or a trial, depending on stipulations within governing contracts and the will of the parties.

Our clients value our practical approach, and our desire to help resolve the dispute quickly and in a cost-effective manner.  They also respect our reputation and track record in these disputes and appreciate that we are able to represent them at any stage of a business dispute, from negotiation through mediation, in arbitration, or at trial.

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

Contact a Proven California Investor Dispute Resolution Attorney Based in San Diego

If you are involved in a lawsuit or dispute with an investor in San Diego or anywhere in California we invite you to review our podcast Episode 14 – Shareholders Rights and Disputes as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.  We will work with you to preserve the investments of your time, energy, money and hard work.

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.