Texas Minority Shareholder Oppression Lawsuits Can Occur When Minority Shareholders of Privately Held Texas Corporations Are Oppressed or Exploited By Majority Shareholders by Texas Minority Shareholder Oppression Lawyer Jason S. Coomer
In Texas, there are a growing number of shareholder business disputes that result in lawsuits. These Texas shareholder lawsuits can occur in several different situations including where corporate directors or executives violate their fiduciary duty and take advantage of their position to detriment of other shareholders. Minority shareholder oppression lawsuits can occur when majority shareholders have used their controlling interest in a business to squeeze minority shareholders out of the business's management and prevent the minority shareholder from cashing out of the business or from receiving their fair share of the business's profits.
If you are a minority shareholder that is being taken advantage of by majority shareholders, it may be beneficial to hire a Texas minority shareholder lawyer to seek an accounting, prevent breaches of fiduciary duty, and seek a fair revenue or distribution of the business. For information on a Texas shareholder oppression lawsuit or Texas business dissolution lawsuit, please feel free to contact Texas minority shareholder lawyer, Jason S. Coomer.
Texas Privately Held Limited Liability Corporations and Limited Partnerships Can Create An Opportunity For Shareholder Oppression
When becoming a minority shareholder in a privately held business, it is often a good practice to include a redemption agreement that provides an agreement as to how the minority shareholder can exit or cash out of the business. Without a redemption agreement in a privately held business, a minority shareholder can be stuck as an investor in the privately held business and have to wait for a liquidity event such as an Initial Public Offering (IPO), merger, or sale to be able to cash out of the business. In certain situations, the minority shareholder may have to resort to litigation in order to protect their interests in the privately held business. Texas minority shareholder oppression lawsuits often arise when controlling shareholders in a privately held business use their power as the majority shareholder to exploit and deny minority shareholders the right to share in the financial returns of the business and/or prevent a minority shareholder from obtaining an accounting of the business. This shareholder financial exploitation can occur in a Limited Liability Company (LLC) or a Limited Partnership (LP) and can be the basis of a minority shareholder oppression lawsuit.
Texas Shareholder Lawsuits, Texas Corporate Malfeasance Lawsuits, Texas Breach of Fiduciary Duty Lawsuits, and Texas Shareholder Actions Lawsuits
Unfortunately, controlling shareholders sometimes wrongfully and fraudulently use their controlling interest in a company for their own benefit at the expense of minority shareholders. When a majority shareholder uses corporate malfeasance and breach of fiduciary duties, the minority shareholder may have a viable Texas shareholder oppression lawsuit against the majority shareholders. In any Texas shareholder oppression lawsuit, Texas corporate malfeasance lawsuit, or Texas business breach of fiduciary duty lawsuit, it is important to understand the rights, fiduciary duties, and responsibilities of the majority shareholders, board of directors, managing partners, corporate officers, corporate counsel, chief financial officers, and managers. It is also important to obtain as much evidence of the malfeasance, self dealing, fraud against shareholders, wrongful suppression, embezzlement, or other bad acts as possible prior to the start of litigation. In many of these cases, once litigation has begun, obtaining evidence of the unlawful and bad acts is difficult and heated. Litigation battles often occur as many documents begin to disappear. In many of these commercial litigation battles, proving destruction of documents or spoliation becomes a key issue. The term spoliation broadly refers to the intentional, reckless, or negligent destruction, loss, material alteration or obstruction of evidence that is relevant to litigation.
Texas Negligent Misrepresentation Lawsuits and Texas Fraudulent Misrepresentation Lawsuits
Texas has business tort laws against both fraudulent and negligent misrepresentation that can be brought against businesses and individuals that make misrepresentations that cause significant damages. Under Texas negligent misrepresentation law, a business or individual "who, in the course of his business, profession or employment, or in any transaction in which he has a pecuniary interest, supplies false information for the guidance of others in their business transactions, is subject to liability for pecuniary loss caused to them by their justifiable reliance upon the information, if he fails to exercise reasonable care or competence in obtaining or communicating the information." described by the Restatement (Second) of Torts Sec. 522. See Federal Land Bank Ass’n of Tyler v. Sloane, 825 S.W.2d 439, 442 (Tex. 1991).
In moving forward on a Texas Fraudulent or Negligent Misrepresentation Lawsuit against a corporation, partnership, limited liability company, professional corporation, individual or other business, it is important to have an experienced business litigation lawyer or business litigation team that is able to review and prosecute your Texas Misrepresentation Lawsuit.
Shareholder Investment Fraud Lawyer, Minority Shareholder Investment Fraud Lawyer, Accredited Investor Investment Fraud Lawyer, Shareholder Suppression Lawyer, Texas Business Fraud Litigation Lawyer, Texas Business Fraud Lawyer, and Texas Business Fraud Litigation Teams
Austin Texas Shareholder and Investment Fraud Lawyer Jason Coomer frequently works with other Shareholder and Investment Fraud Business Litigation Lawyers across Texas and the United States including Houston Business Lawyers, Dallas Business Lawyers, San Antonio Business Lawyers, and other Austin Business Lawyers to provide high end professional legal services at reasonable prices. He understands that many Texas businesses have locations throughout Texas and the United States and may require good shareholder business litigation lawyers in different locations throughout the state and the United States.
Texas Shareholder Investment Fraud lawyer, Jason S. Coomer, is an experienced and aggressive commercial fraud litigation attorney that helps investors and business owners protect and reclaim their assets from businesses and individuals that have committed fraud, negligent misrepresentation, deceptive business acts, unfair corporate competition, and other wrongful actions. He works with individuals and businesses that have suffered significant damages from these wrongful acts to obtain evidence of the fraud, negligence, or other business tort; calculate the damages that have been suffered and what can be sought under the law from the wrongdoers; and prosecutes business tort claims through the court system and arbitration to obtain compensation for damages that were suffered. If you need an Austin Texas Shareholder Investment Fraud Lawyer or a Texas Minority Shareholder Business Fraud Litigation Attorney to advise you on a shareholder suppression lawsuit, minority shareholder lawsuits, accredited investor lawsuit, business fraud lawsuit, negligent misrepresentation lawsuit, breach of contract lawsuit, breach of fiduciary duty lawsuit, unfair business competition action, or other business litigation dispute, contact Austin Texas Minority Shareholder Lawyer Jason Coomer.
Feel Free to Contact Us with any Questions