Are you searching for the right attorney for your California shareholder dispute? Are you concerned about how the actions of another shareholder, executive or majority stakeholder has or will affect the value of your investment? Are there suspicious actions being considered regarding merging the company with another entity or obvious mismanagement of the company?
Key Takeaways about How to Find the Right Attorney for Your California Shareholder Dispute:
- California has unique and specific laws that provide additional protections for minority shareholders and stakeholders in all California companies.
- The central issue in most shareholder disputes is money.
- Look for an experienced shareholder dispute resolution law firm, with a proven track record of resolving these disputes in multiple venues: negotiation, settlement conferences, business mediation, arbitration, and at trial.
You Need the Right Attorney for a Shareholder Dispute in San Diego or Southern California
The good news is California has very specific laws that provide additional protections to minority shareholders. These protections are in addition to the expansive laws governing shareholders in the federal commercial code. If you are concerned about improper actions, the failure to declare or distribute dividends or any other issue associated with your investment you need the right attorney for a shareholder dispute in San Diego or Southern California.
The Watkins Firm has more than four decades of proven success in cases involving a shareholder dispute. We have gone up against powerful national interests on behalf of local clients and won. Ask your Watkins Firm attorney about how we have managed cases which are similar to yours and the types of successful outcomes we have been able to achieve on behalf of our clients.
While the central issue in most shareholder disputes is money there are as many ways for a minority shareholder to suffer unfair business practices are there are stars in the evening California skies.
In many cases, the majority interest and/or company management may use deception or outright business fraud in order to reduce the amount of money they claim you deserve. This can extend to everything from doctoring company financials and the books to breaches of fiduciary duty, self-dealing, denial of access to corporate books and records or unfair treatment of different shareholders within the same investment class.
We have witnessed cases where a group of the majority have doctored outcomes to lead the shareholders to close an entity, and then turn around and take the central product overseas under a different name while achieving tremendous financial gain. In that case we achieved a multi-million dollar settlement for the defrauded shareholder we represented.
In another case, we represented a local office of a national chain. The books were regularly off by a few thousand dollars, and when we investigated we found the accountant in the national office was taking a legitimate expense and instead of dividing it evenly between all the other offices charged the full amount to each office. When our work was completed our client had fully recovered all financial damages and we had achieved separation for our client’s company from the national entity.
No shareholder dispute is too large or too small. We work to protect your investment and interests while accomplishing your goals and objectives.
Resolving a Shareholder Dispute Quickly and Efficiently
Why is the Watkins Firm the right attorney for a shareholder dispute in San Diego and Southern California. The first reason is our extensive track record of success in these cases across more than 4 decades of service to the business and medical / healthcare communities. The second is our unique approach to resolving a shareholder dispute which is specifically designed to resolve your dispute quickly and in a cost-effective manner.
The Watkins Firm is able to resolve the vast majority of shareholder disputes through effective, leveraged negotiation. Negotiation is the fastest and least costly way to resolve your dispute. We also represent our clients in filing or defending a lawsuit, at the settlement conference, and in mediation. Mediation is a private legal venue which keeps your personal and financial information out of the public record while creating an environment where disputes can be efficiently resolved.
In cases with substantial interests at stake we represent our clients in arbitration and at trial. The Watkins Firm has the resources, legal skill and experience to represent any shareholder dispute case and achieve a successful outcome for our clients.
Pro-Tip: “we’ve, we’ve had so many shareholder fights where, a 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
If you are looking proven experience, successful strategies and the right attorney for a shareholder dispute in San Diego and Southern 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.
