Podcasts

Stark & Stark Shareholder Obtains $3,000,000 Settlement in Shareholder Oppression Case

By Stark & Stark

On Tuesday August 17, 2010, Scott I. Unger, Shareholder in Stark & Stark's Litigation Group, successfully negotiated a multi-million dollar settlement in a complex shareholder oppression case in Monmouth County, New Jersey. The $3,000,000 settlement (including counsel fees) was approved by the Honorable Thomas W. Cavanagh, Jr. P.J.Ch., Monmouth County.

 
Mr. Unger represented a minority shareholder of two family owned companies: Bilkays Express Co., a regional trucking and commercial real estate company located in Elizabeth, New Jersey, and The Bobby Corporation, a company which owns and leases commercial properties throughout New Jersey and New York.

 
It was alleged that the Defendants breached fiduciary duties by operating the companies in a manner which benefitted themselves at the detriment of the Plaintiff. Moreover, it was alleged that the Defendants failed to share a substantial offer to purchase two of the companies' commercial real estate properties with the Plaintiff, who was also a board of director. Finally, the Plaintiff alleged that the defendants threatened to remove the Plaintiff from the board of directors, instructed company employees not to speak with the Plaintiff, and failed to provide requested financial information. Mr. Unger argued that the Plaintiff was entitled to a buyout of his ownership interests in Bilkays and The Bobby Corporation as an oppressed minority shareholder. The case settled prior to verdict.

Full post as published by New Jersey Law Blog on August 20, 2010 (boomark / email).