Rough Times May Breed Shareholder Oppression

Law360, New York (January 29, 2009, 12:00 AM EST) -- In an economic downturn, public companies aren’t the only ones to face an increased risk of legal challenges from shareholders. Attorneys who specialize in so-called shareholder oppression suits say times of financial stress become fertile ground for shareholder disputes in private corporations.

When minority shareholders in closely-held corporations feel they are being treated unfairly, legal action is often one of the only avenues open to them. Shareholders in public companies can easily sell their stake in the company, but private company shareholders don’t have that option....
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