Newman, Simpson & Cohen LLP brought a lawsuit on behalf of minority shareholders in a corporation operating a restaurant in Bergen County. The complaint primarily alleged that the majority owners of the corporation had oppressed our clients in violation of New Jersey’s Oppressed Minority Shareholder Statute, N.J.S.A. §14A:12-7(I)(C). The complaint also sought to provide our clients access to the books and records of the corporation, which they claimed had been improperly withheld; and alleged that the defendants had breached their fiduciaries duties to our clients, as well as their obligations under the governing shareholders agreement.
Less than ten months after the complaint was filed, we successfully negotiated a very favorable settlement on behalf of our clients, which included a buy-out of their minority interests. By thoroughly evaluating this case and resolving it early, we were able to spare our clients significant time and expense they would have otherwise incurred in connection with continued litigation.