Powers Taylor announces that it has obtained a $1.45 million settlement* on behalf of a minority shareholder in a Dallas-based closely held private company and a related Canadian company.
The case originated in September 2004 when the US company’s then Chief Executive Officer and 18% shareholder was terminated by the company’s Board of Directors. The minority shareholder claimed that he was improperly terminated, shut out of the operations of both companies, and denied access to company books and records. In addition, he claimed that the remaining shareholders and directors were mismanaging the companies and taking large improper distributions.
After years of legal battles beginning in 2004, in both state and federal courts, between the companies and the remaining shareholders, Powers Taylor was called in to take the case to trial. After streamlining the allegations to focus on derivative shareholder claims and claims for minority shareholder oppression, obtaining a comprehensive valuation of the companies, and engaging in lengthy negotiations between the companies and the various shareholders, Powers Taylor was able to secure a $1.45 million settlement for the firm’s shareholder client.
“I am ecstatic about this result,” said Patrick Powers, Powers Taylor founding partner and lead counsel for the plaintiff. “This complex case involved two different privately-held companies in Texas and in Canada, claims filed in multiple district courts in Dallas, Texas state courts, bankruptcy proceedings and related adversary proceedings in federal bankruptcy court in the Northern District of Texas, and probate proceedings. In addition, when we became involved the court was considering a motion that could potentially have resulted in dismissal of the entire case. All in all, when this case came to us it was complex, messy, and out of control. We were the sixth firm to handle claims on behalf of our client, but our firm was the only one to reach a comprehensive settlement of all remaining cases and claims. Our settlement was hundreds of thousands of dollars more than any previous settlement overtures by the company and the remaining shareholders. This is an example of what our firm brings to the table — ingenuity, top notch legal talent, and an uncompromising desire to obtain the best results for our clients.”
Patrick’s practice includes representing shareholders in derivative lawsuits and federal securities class action cases nationwide, as well as representing clients in catastrophic personal injury cases, fighting for minority shareholders in private business breakups, and representing companies and individuals in complex commercial litigation matters.
Powers Taylor, LLP is a boutique litigation firm located in Dallas, Texas. The Dallas shareholder litigation attorneys at Powers Taylor, LLP handle a variety of shareholder derivative litigation claims, cases involving corporate and officer fraud, and pursue federal class action securities cases across the country. In addition, the firm’s shareholder rights attorneys regularly represent minority shareholders and limited liability company owners of private closely-held Texas companies in litigation involving minority shareholder oppression, illegal squeeze-outs, and improper dilution of ownership.
To learn more about Powers Taylor’s shareholder derivative and securities class action litigation practice, please visit https://powerstaylor.com.
To learn more about Powers Taylor’s Texas minority shareholder oppression practice, please visit www.texasshareholderoppression.com.
*Gross recovery – $1,450,000.00
Net client recovery – $789,852.99
Attorney fee – $652,500.00
Case expenses – $7,647.01