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Expert Analysis

Texas High Court Changes Shareholder Dispute Landscape

Law360, New York (July 1, 2014, 10:12 AM EDT) -- On June 20, 2014, the Texas Supreme Court issued an important decision in Ritchie v. Rupe, Cause No. 11-0447, defining the rights and remedies of minority shareholders of Texas businesses. In Rupe, the Supreme Court substantially limited the circumstances under which minority shareholders can invoke the doctrine of minority oppression by (1) narrowly construing the definition of what constitutes "oppression"; (2) refusing to recognize a statutory right to an equitable buyout of a minority shareholder's interest; and (3) refusing to recognize any common law cause of action for minority oppression....

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