Success in Lawsuit as to Buyout of LLC Shares
Our client departed from a professional practice, but his former partners refused to pay him for his shares in the professional practice, structured as an LLC, and also refused to pay him for his shares in a related corporation in which he had a one third interest. We filed a lawsuit against the former partners and vigorously cross examined them in depositions, showing them the weaknesses in their positions, both factually and legally.
Our client had started the professional practice, obtained sound advice as to its structure, and was a full participant in the related business. The former partners, however, were claiming that our client made fraudulent representations during a conversion of the practice to an LLC and in the conduct of the other related corporation.
We commenced both a shareholder derivative lawsuit and a case for a buyout of the client’s interest in the LLC. The former partners contended that our client was not entitled, legally, to any buyout of his shares in the LLC. Our legal team identified legal issues in the state’s LLC law that had yet to be addressed by any court in the state and these issues became a concern for parties in similar circumstances.
After a series of legal battles, the former partners fired their law firm and hired a new firm. After battling with the new firm and forcefully pushing our client’s claims, we succeeded in obtaining a large settlement for our client.