Need to Protect Your Shareholder Rights in a Merger or Acquisition?
Our Class Action and Business Litigation Lawyers Can Help
You try to plan for your financial future. Perhaps you bought shares of stock with the intent to use the profits from your investment for your future retirement or your children’s college tuition. Minority shareholders of a publicly traded corporation often find themselves at a disadvantage during a proposed merger or acquisition of the company. To level the playing field and protect your financial interests, you need the advice and counsel of the experienced Texas class action and business litigation attorneys at The Beckham Group.
The Board of Directors and/or management of the corporation you invested your money in has a fiduciary duty to make business decisions that increase the value of the company and that are in the best interests of the shareholders. With the increase in friendly and/or unfriendly corporate mergers and acquisitions, companies sometimes focus more on the deal than on the protection of your shareholder rights. Some Board of Directors, majority owners, and/or management, are tempted to breach their fiduciary duty to create a better deal, and more money for themselves by trying to oppress minority shareholders in any of the following ways:
- Negligent behavior — Misapplication or mismanagement of funds or assets, granting “sweetheart” loans, use of corporate funds to pay personal obligations
- Freezing out of earnings share — Excessive officer salaries or bonuses to majority shareholders or officers to reduce profits
- Elimination of stock — Through a merger, reverse stock split, or share exchange
- Moving assets — Away from the business
- Terminating the employment — Of the minority shareholder
- Dilute stock value — By issuing more stock
- Fraudulent representation — Of products or business prospects
- Freeze trading — Prevent you from selling your shares of stock
- Withholding information — Regarding the proposed merger or acquisition
- Cut a deal — Trying to force you out
- Unfair price offer
Shareholders similarly taken advantage of often join together to file a lawsuit against the majority shareholders, directors and/or management of the offending company through a class action. With the assistance of the class action lawyers at The Beckham Group, the power of this shared representation is especially beneficial in trying to prevent a sale or merger, force adequate disclosures, and obtain the best possible deal for the shareholders of large corporations. “Strength in numbers” is an accurate statement. Shareholders can hold directors and officers of corporations in the throes of a merger or an acquisition accountable for their actions and wrongdoings.
Courts have awarded compensatory damages to minority shareholders, issued injunctions to prohibit further oppressive conduct, and appointed receivers to continue the operations of corporations for the benefit of all the stockholders until the oppressive conduct ceases.
Contact a “professionally aggressive” class action attorney at The Beckham Group today for a free consultation to assist you in protecting your shareholder rights during a merger or acquisition.