Category Archives: Shareholder Disputes
Why Are So Many Shareholder Lawsuits Filed In Delaware?
No state is more associated with corporations and corporate law than Delaware. According to data from the Delaware Division of Corporations, approximately two-thirds of all Fortune 500 companies in the United States are incorporated in Delaware. For this reason, a significant percentage of major shareholder lawsuits are filed in Delaware. Here, our Miami shareholder… Read More »
Social Media Company Pinterest Settles Shareholder Lawsuit Over Workplace Culture
According to a report from NBC News, the social media company Pinterest has settled a shareholder lawsuit related to allegations over its “toxic” workplace culture. The lawsuit was initially filed by the Employees’ Retirement System of Rhode Island. The specific details of the settlement were not disclosed to the public. In this blog post,… Read More »
Zillow Shareholders File A Lawsuit After Company’s Home “Flipping” Strategy Goes Wrong
According to a report from The Seattle Times, a group advocating on behalf of Zillow shareholders is filing a lawsuit against the corporation after its “flipping” strategy caused significant losses. The shareholders allege that Zillow’s corporate leadership made material misrepresentations to investors. The lawsuit comes after news that Zillow has made the decision to… Read More »
Boeing Board Of Directors Will Pay $237.5 Million To Settle Shareholder Dispute
According to a report from the Seattle Times, a group of current and former directors at Boeing have preliminarily agreed to pay $237.5 million to settle a shareholder dispute. The proposed shareholder agreement, which was filed in the Delaware Chancery Court last week, is related to the board’s alleged oversight regarding safety issues related… Read More »
Report: SPACs Increasingly Involved In Shareholder Litigation
According to a report from Reuters, special-purpose acquisition companies (SPACs) have recently come under the microscope and are now facing a wave of litigation. Class action shareholder lawsuits involving special-purpose acquisition companies are up by more than 400 percent since this last year. Here, our West Palm Beach shareholder disputes lawyers provide an overview… Read More »
Four Of The Most Common Issues In Shareholder Derivative Lawsuits
Shareholder derivative lawsuits fall into two categories: Direct lawsuits and derivative lawsuits. With a direct claim, a shareholder is filing a lawsuit on their own behalf. With a derivative claim, a shareholder is filing a lawsuit on behalf of the corporation itself. The Cornell Legal Information Institute notes that derivative claims are usually filed… Read More »
An Overview Of The Corporate Records Shareholders Have A Right To Demand In Florida
Are you the shareholder of a Florida corporation? If so, you have important legal rights under state law. Some of the most essential shareholder rights in Florida are found under Florida Statutes § 607.1602. This section of state law allows shareholders to “inspect and copy” certain types of corporate records. Here, our Miami shareholder… Read More »
Florida Senator Marco Rubio Pushing Bill To Give Shareholders Additional Authority To Challenge So-Called “Woke” Corporations
According to a report from Florida Daily, Florida Senator Marco Rubio recently introduced legislation called the “Mind Your Own Business Act” that proposed new legal tools to shareholders who want to challenge so-called “woke” corporations. In this blog post, our West Palm Beach shareholder dispute lawyers discuss the proposed legislation from Senator Marco Rubio…. Read More »
Twitter Pays More Than $800 Million To Resolve Shareholder Lawsuit
According to a report from ABC News, Twitter will pay $809.5 million to settle a shareholder lawsuit. The settlement pertains to a consolidated class action case that was filed over allegations that the social media giant misled investors on key user-related metrics. Twitter has consistently denied any intentional or willful misconduct, though the company… Read More »
What Is The Difference Between A Shareholder And A Stakeholder?
The modern business environment is hyper competitive. It takes the contributions of many different people to make a successful company. Those who have a direct ownership interest in a corporation are called shareholders. Those who have any type of interest in the corporation are called stakeholders. In this blog post, our West Palm Beach… Read More »
The Top Three Reasons Why Minority Shareholder Sue Corporate Officers
Broadly defined, a minority shareholder is any shareholder who holds less than 50 percent of the total value of a corporation’s shareholder. A minority shareholder may be someone who owns a 40 percent stake in a mid-sized, closely held corporation. Alternatively, a minority shareholder may be someone who owns far less than 1 percent… Read More »
Shareholders Score Victory In Lyft IPO Lawsuit, Obtain Class Status
According to a report from Reuters, a group of Lyft shareholders have scored an important victory in their lawsuit centered around the company’s initial public offering (IPO). A federal judge in California has stated that shareholders can proceed with their class action claim against the San Francisco-based ridesharing giant. The plaintiffs allege that Lyft… Read More »
Shareholder Disputes: What Is An Activist Shareholder?
A minority shareholder must put a significant amount of trust in the hands of a corporation’s officers and directors. Most shareholders are relatively “passive”—they rely on the company’s decision-makers to protect the best interests of the business. An “activist shareholder” is an exception. In this article, our West Palm Beach shareholder dispute lawyers highlight… Read More »
Shareholder Lawsuits In Florida: What Is The Business Judgment Rule?
Minority shareholders put an enormous amount of trust in the hands of corporate officers and corporate directors. When the people running a corporation abuse their power, it can cause serious damage to the shareholders. In certain circumstances, shareholders can file a lawsuit to seek compensation for their losses. That being said, there are limits… Read More »
What State Has Jurisdiction Over Shareholder Disputes?
Shareholder disputes can arise for a wide variety of different reasons. If you are considering filing a lawsuit as a shareholder—whether a direct claim or a derivative claim—it is imperative that you follow the proper filing procedures. This raises an important question: Where do you file a shareholder lawsuit? After all, many companies operate… Read More »
Shareholder Disputes: What Is A SPAC?
On July 13th, 2021, the Securities and Exchange Commission (SEC) announced the settlement of charges involving a SPAC (special purpose acquisition company). It is one of the first times that the federal agency has taken successful enforcement action in a case involving a SPAC. Special purpose acquisition companies have boomed in recent years—and officials… Read More »
Shareholder Lawsuit: Elon Musk Testifies In SolarCity Acquisition Case
According to a report from CNBC, Elon Musk recently testified in a shareholder lawsuit related to Tesla’s $2.6 billion acquisition of SolarCity. Notably, Mr. Musk, the CEO of Tesla, also previously served as the Chairman of SolarCity. Some shareholders alleged that Mr. Musk—along with some other Tesla board members—personally gained from the company’s acquisition… Read More »
What Can A Minority Shareholder Do If Their Rights Are Being Violated?
A minority shareholder of a closely-held Florida corporation must put their trust in the faith of the majority owners. By definition, minority shareholders have little direct influence over the day-to-day operations of the company. This raises an important question: Can minority shareholders take action to stop their rights from being violated? The answer is… Read More »
U.S. Appeals Court: Google Must Face A Shareholder Lawsuit
According to reporting from the Insurance Journal, Alphabet Inc.—the parent company of Google—must face a lawsuit from shareholders. Overturning the decision of a lower court, the United States Court of Appeals for the Ninth Circuit found that the plaintiff’s claims raised a “strong inference” that Google’s top leadership improperly concealed securities risks. Here, our… Read More »
Class Action Shareholder Lawsuit Filed Against Florida-Based PureCycle Technologies
According to a report from Yahoo Finance, a class action shareholder lawsuit has been filed in the United States District Court for the Middle District of Florida against PureCycle Technologies. Based in Orlando, FL, PureCycle Technologies is a recycling processing company. Representatives for the plaintiffs allege that the company made material misrepresentations to shareholders…. Read More »
