Category Archives: Shareholder Disputes
Shareholder Lawsuit: CoreCivic Settles Shareholder Dispute For $56 Million
According to a report from The Denver Post, CoreCivic, one of the largest private prison companies in the United States, has agreed to pay $56 million as part of a settlement with shareholders. The underlying dispute centered around a significant drop in the company’s stock price in 2016—and what corporate directors did or did… Read More »
Shareholder Vs. Shareholder: Individual Or Derivative Lawsuits?
As you may know, a shareholder can sue a company and its owners or directors, for mismanagement of the company, or for dereliction of their fiduciary duties to the company. But what about one shareholder or partner (in a partnership) suing another? Do those cases have to be brought as derivative actions—that is, on… Read More »
Federal Judge In Miami Tosses Out Shareholder Lawsuit Against Norwegian Cruise Lines
According to a report from Reuters, a Miami, FL-based federal judge has dismissed a shareholder lawsuit against Norwegian Cruise Lines. A group of shareholders were pursuing a proposed class action claim against the South Florida headquartered company on the grounds that its top executives were intentionally and improperly downplaying the risks of the COVID-19… Read More »
Shareholder Disputes In Florida: Are Mandatory Arbitration Provisions Enforceable?
A shareholder agreement is a contract between the stakeholders of a corporation. When properly drafted, it should define a shareholders’ rights, privileges, and responsibilities. Should a shareholder dispute arise, the first place to look is the shareholder agreement. In it, you may find a mandatory arbitration provision. This raises an important question: Are forced… Read More »
How to Deal With the Early Stages of a Shareholder Dispute
Shareholder disputes can arise for a wide range of different reasons—from fundamental disagreements about the current direction of the company to allegations of serious misconduct by a corporate officer, corporate director, or the majority shareholder. With shareholder disputes, partnership disputes, and other internal business disputes, a proactive approach is always best. There are steps… Read More »
Shareholder Disputes: Inspection of Corporate Financial Records
Shareholders have valuable legal rights under Florida state law. Among other things, a minority shareholder’s rights include the ability to access and inspect certain corporate financial records. Under Florida Statutes § 607.1602, shareholders have a general right to inspect otherwise sensitive financial statements and accounting information with written proper notice. However, a shareholder’s right… Read More »
How to Resolve a Shareholder Dispute When There is No Shareholder Agreement
As described by the Cornell Legal Information Institute, a shareholder agreement is a binding contract between the shareholders of a corporation. While they provide clarity and legal protection, a shareholder agreement is optional. This raises an important question: How is a dispute resolved if there is no shareholders’ agreement? Here, our Miami shareholder dispute… Read More »
Florida Law: Corporations Prohibited from Amending Bylaws to Undermine a Shareholder’s Contractual Rights
Minority shareholders are in an inherently vulnerable position. By definition, they lack the power to exert direct control over the company. Minority shareholders must put a significant amount of trust into the hands of a corporation’s board of directors. Shareholders also have some important legal protections. Florida law prohibits a corporation from amending its… Read More »
Shareholder Deadlock Disputes: An Overview
A closely held corporation is a company with a limited number of shareholders. In some cases, a closely held corporation may have as little as two shareholders. Shareholders deadlocks are among the biggest threats to smaller companies. A deadlock can cause serious problems for a corporation—potentially even grinding operations to a halt. Here, our… Read More »
Shareholder Derivative Actions in Florida: What is Demand Futility?
A shareholder derivative action is a suit brought by a shareholder on behalf of the corporation. In most cases, the lawsuit is filed against a corporate officer, director, or other insider accused of misconduct. Shareholder derivative claims are complicated. There are strict rules and standards that must be satisfied to bring a successful shareholder… Read More »
