At Reif Law Group, P.C., we have extensive experience representing clients in a wide range of corporate, shareholder, and partnership disputes throughout Southern California. From disputes over finances and control, to allegations of wrongdoing, to conflicts over visions and values, we represent owners, investors, and minority stakeholders in both arbitration and litigation.
We prepare each case for trial to give our clients leverage at the bargaining table. When a settlement cannot be reached, our trial-ready approach allows us to achieve positive outcomes in state and federal court. Contact our Los Angeles or Irvine office today to consult with our experienced partnership and shareholder dispute attorneys.
Common Corporate, Partnership, and Shareholder Disputes in SoCal
Because disputes can be disruptive to any privately or publicly held business, it is crucial for stakeholders to have proper legal representation. We provide offensive and defensive capabilities to clients involved in all types of disputes, including:
- Shareholder and partnership disputes
- Officer and director misconduct
- Breaches of fiduciary duty and self-dealing
- Misappropriation of corporate assets and embezzlement
- Minority shareholder oppression
- Profit-sharing disputes
- Failure to pay distributions or investment returns
- Lack of transparency with financials and business records
- Corporate, joint venture, and partnership dissolution
We have the resources to manage the significant documentation and technical data that is associated with these cases and the trial skills to prosecute or defend any dispute when necessary. Given that a protracted legal battle can be costly, we work to achieve negotiated solutions before proceeding with litigation. But we are always fully prepared to try cases to achieve the best results for our clients.
Types of Corporate Misconduct That Can Lead to Shareholder Disputes in Southern California
Corporate executives have a fiduciary duty to always act in the best interests of shareholders, however, disputes often arise from all types of misconduct, including:
- Breach of duty of care — Corporate directors and officers must act responsibly in managing corporate affairs and also act in good faith when making business decisions. This duty can be breached when an officer or director fails to exercise good judgment, acts in bad faith, or is not reasonably informed when making business decisions.
- Breach of duty of loyalty — Directors and officers have a duty to put the financial interests of shareholders first and cannot profit at the business’s expense. A breach of duty of loyalty may involve self-dealing, misusing corporate assets or using corporate funds for personal expenses.
- Accounting malpractice — Corporate executives must adhere to generally accepted accounting principles (GAAP). Using aggressive accounting techniques and overstating or manipulating earnings is considered accounting malpractice, in which case, shareholders can take legal action to seek the removal of any directors or officers who had knowledge of any wrongdoing.
- Unsuitable mergers and acquisitions — A shareholder lawsuit may arise to challenge a proposed merger or acquisition, particularly when directors and officers fail to properly evaluate the intended transaction. If a deal fails to maximize share value, directors and officers may be held liable for breaching their fiduciary duty.
- Other breaches — Shareholder disputes can also arise if company executives fail to address allegations of discrimination and harassment or violations of other state and federal rules and regulations.
Because shareholder disputes can be highly sensitive and complex, it is crucial to work with attorneys who have the investigative and analytical skills to build a compelling case. Reif Law Group is the trusted choice in high-stakes litigation arising from shareholder disputes.
Minority Shareholder Oppression
Minority shareholders in a closely held corporation can face oppression when their rights are denied or the majority owners act against the best interests of the minority. Oppressive conduct comes in many forms, particularly when minority owners are unable to divest or are excluded from the decision-making process.
If you believe your rights as a minority shareholder have been violated or that you have been oppressed, it takes a skilled attorney to protect your interests. Our legal team works to resolve disputes arising from shareholder oppression in a timely and efficient manner.
Partnership Disputes in SoCal
Business partnerships can become strained when the partners disagree over strategic decisions or other serious issues arise, such as misappropriation of funds or breaches of fiduciary duty. Although a well-crafted partnership agreement will determine the rights and obligations of the partners, disputes are not uncommon and litigation may become unavoidable. We are highly experienced in negotiating and litigating partnership disputes and work to find cost-effective solutions to protect our clients’ interests.
Contact Our Experienced SoCal Corporate and Shareholder Disputes Attorneys
At Reif Law Group, we work to help our clients find real-world solutions to corporate, partnership, and shareholder disputes. When disputes cannot be resolved through negotiations, we can quickly pivot and take legal action. Regardless of the forum — arbitration, mediation or litigation — trust our aggressive corporate law team to protect your interests. Contact our office today to schedule a consultation.