The situation was this: An absentee 50% owner of a freight forwarding business in Los Angeles that specialized in moving props for the movie industry for filming at sites outside the U.S. suspected that the other shareholder and officer who was on site at the freight forwarding business in Los Angeles was diverting large amounts of money and business opportunities from the corporation.
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What followed were shareholder lawsuits, management shake-ups and stunning financial reports. Keep reading…
The client found that the income and assets of the business were far below what they should have been in this industry and that his income as a 50% owner of the business was suffering.
Commercial Law & Litigation Attorney Howard M. Loeb – Corporate Lawyer Settles Major Shareholder Dispute
In World Class Media’s Interview – Howard described the actions he took to resolve the situation: “The plan that I designed and implemented included demanding inspection of books and records of the company, using the client’s rights as a shareholder and director to request these items. Working with the assistance of a forensic accountant and through the use of written discovery and depositions we found a large amount of evidence that supported the client’s position that the other shareholder and officer had set up several competing businesses at the company’s location. As one of the weapons for what I charged was a breach of the fiduciary duties by the other officer and shareholder I filed a lawsuit for the appointment of a provisional director because of the deadlock with the defendant shareholder. The court appointed the independent third party director who held a meeting with both sides present. This soon led to a settlement where my client was able to recover a significant amount of moneys from the other side.”
Although the final outcome is confidential in nature – the client was very pleased at the outcome.