Investor or Business Investment Dispute in California
Are you an investor in a small to mid-sized business? Are you involved in an investor or business investment dispute in Southern California? Have you invested in an LLC as a partner or member? Are you a shareholder or a minority stakeholder in a corporation? Investment related disputes are one of the most common forms of business litigation in California.
You need an experienced business litigation and dispute resolution attorney who can provide sound advice while working to resolve the dispute or lawsuit in a cost-effective and timely manner.
There are many ways for investors to become embroiled in a dispute. In the end, the vast majority of these disputes comes down to one thing: money. This can take the form of missed dividend payments or the failure to make agreed upon disbursements. Majority stakeholders are unfortunately often involved in schemes and strategies designed to weaken the influence of a minority investor or dilute the value and power of the holdings.
A company may attempt to freeze out their investors by denying established rights and access to important corporate information or the books. It is common for a proposed merger to be structured in a way which will dilute the value of a minority investor’s interests as well as their influence. An acquiring entity may attempt to buy out the investors interest for a “fair cash value” which is far below the amount the original investment deserves. Those who do not agree with a proposed merger or transaction are known as “dissenting investors or shareholders.”
The good news is that minority shareholders and investors have specific rights in California and across the United States. Shareholders within a given class must be treated equally (which they often simply aren’t). A strong investor or business investment dispute attorney can step in and help to protect your rights and your financial interests.
Look for an investor or business investment dispute attorney with decades of experience and a proven successful track record of resolving these disputes in a cost-effective and timely manner. In some cases negotiation and/or mediation may be the fastest and most efficient strategies to accomplish your goals and objectives. In other cases an investor or shareholder may need to bring a “derivative action” on behalf of the company itself against majority shareholders or stakeholders. A derivative lawsuit is filed on behalf of the corporation itself and the corporation is the sole beneficiary of any resulting damages or intervention by the Courts.
Investors have rights. You have invested your money, time and energy into a business investment based upon promised performance and deliverables. You have rights. Your dispute resolution attorney should work to gain a clear understanding of your goals for the dispute and develop a strategy to resolve the matter while accomplishing these objectives in an efficient and timely way.