We have handled numerous disputes concerning closely-held and family-owned businesses, including, for example, the following:
- Representation of executive chairperson in connection with the development of a digital e-commerce platform. A dispute arose between the chairperson and the founder regarding corporate control, compensation, investor relations, sweat equity credit, and corporate direction. Our action brought in the District Court for the Southern District of New York was quickly and efficiently resolved in favor of the chairperson.
- Defense of hedge fund principal against former investors asserting claims of federal and state securities fraud, fraudulent inducement, negligent misrepresentation and unjust enrichment. Coordinated multiparty defense in a litigation that included two motions to dismiss, extensive electronic discovery, including deal data room analysis, and multiple local and out of state party and fact witness depositions. Worked closely with defendants’ expert witness and took and defended expert witness depositions. Successfully moved for dismissal of a portion of the allegations at the pleading stage and the remainder on summary judgment. Although the summary judgment portion of the dismissal was reversed on appeal to the Second Circuit, our analysis of the appellate decision led the district court to narrow the issues on remand to eliminate all state law claims, which in turn significantly narrowed the issues and led to a defense verdict at trial.
- Representation of foreign real estate investor in connection with fraud claims against his U.S. based partners and advisors. Brought requisite arbitration proceeding to conclusion and obtained substantial judgment against multiple defendants, including former legal counsel to investor. Engaged in substantial post judgment enforcement activities, including obtaining an injunction of judgment debtors subsequent real estate transactions. Ultimately obtained real property and other monetary compensation in satisfaction of judgment.
- Representation of family’s real estate investment vehicles and their managers against former colleagues and joint venturers in connection with separation of their Manhattan real estate interests valued at over $200 million. Successfully obtained an order of dissolution of the jointly owned real estate corporation. Defended client managing member and property manager against joint venturers’ suit seeking damages for breach of fiduciary duty and obtained an order awarding the advancement of litigation costs to our client. Substantial document discovery, multiple mediations, and the leverage generated by the dissolution led to a buy-out arrangement that allowed our clients to neatly disengage from their joint venturers with advantageous tax treatment.
- Prosecution of limited liability company’s claims against former sole managing member of a real estate company who illegally and fraudulently diverted the assets of the company and engaged in criminal activity. Litigation included motion for pre-judgment attachment, motion to dismiss, voluminous discovery, and successful judicial enforcement of the settlement agreement.
- Representation of the minority partner in a closely held health foods company in New York pressing various minority and shareholder oppression claims. Our strategy beginning with the initiation of an action for damages and injunctive relief in response to the termination of our client‘s employment led to the buyout of his interest at a level sufficient to allow him to capitalize his own wholly owned health foods company.