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Investor Freeze-out and Squeeze-Out Litigation: What Should a Minority Shareholder Do?

Investor freeze-out and squeeze-out are common types of shareholder disputes. The method is characterized by one shareholder or group of shareholders attempting to gain control over the company’s assets through a legal maneuver, often either by changing the company’s charter or buying up enough shares to make them a majority.

If you are in dispute with another shareholder, it is essential to know your options. Do you want to keep your shares, or do you want to sell them? How can you be sure you are getting fair terms if it is the latter? These questions can be answered by a highly-qualified Atlanta business litigation lawyer at Hasson Law Group, LLP.

Investor Freeze-Out and Squeeze-Out Litigation: What Are the Major Concerns?

The most obvious concern is that you might lose control of your shares. If another shareholder buys enough shares to make them a majority, they can vote themselves into power and change the company’s charter. This could mean anything from selling off key assets or firing employees to changing the direction of the business entirely.

If you are a minority shareholder, your only recourse may be to sue for damages. This can take time and money, so it is important to look for signs of trouble early on. If you think other shareholders might be trying to “freeze” or “squeeze” you out of your share of the company, speak with an experienced Georgia business litigation attorney as soon as possible.

How Can a Business Litigation Attorney Help a Minority Investor Get Fair Terms?

If you are a minority shareholder, an experienced business litigation attorney can help ensure that your rights are protected. They may be able to help you get fair terms, including:

  • Protection from unfair or unequal treatment by the majority shareholder(s)
  • Protection of your right to sell your shares at market value (or more) if you choose to leave the company
  • Protection of your right to be included in important decisions regarding the company, such as the sale of the business
  • Protection of your right to be paid for any value you add to the company through your efforts
  • Protection against discrimination (both intentional and unintentional)
  • Protection against breach of contract

A business litigation attorney can help you understand your rights and guide you through the process of protecting them. They may engage the situation through negotiation, or they may file a lawsuit if necessary. Your attorney will help you to determine the best course of action, taking into account your goals and objectives.

Contact Hasson Law Group, LLP If You’re Involved in an Investor Freeze-Out/Squeeze-Out

If you are involved in a freeze-out/squeeze-out in Atlanta, contact Hasson Law Group, LLP for help. Our business litigation attorneys have years of experience handling complex legal issues and can guide you through the process. Contact us today at (678) 701-2869 to discuss your circumstances.

We serve the Atlanta, GA area.

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    Hasson Law Group LLC

    The Hasson Law Group, LLP, is an Atlanta, GA law firm dedicated to two principal practice areas: winning high stakes disputes in the areas of business litigation, insurance recovery, and complex criminal defense, and tax, corporate and regulatory law mechanisms affecting family businesses, tax-exempt organizations and the individuals who support or serve them.

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