August 7, 2013 – Galfand Berger helps injured workers. However, we also help small business owners hurt through the bad deeds of business partners and colleagues. Recently, Arthur L. Bugay won a significant shareholder oppression case on behalf of our client.
Shareholder oppression occurs when the majority shareholders in a company take actions that unfairly prejudice the minority shareholders. That’s what happened in the case Arthur handled. Our client, Marvin Roffman, co-founded Roffman Miller & Associates, Inc. (“RMA”) in 1990. Mr. Roffman was initially president of the firm and chairman of the Board of Directors.
By 2007, however, RMA was governed by a majority of the shareholders who excluded Mr. Roffman from its management team, prevented him from being a client advisor, and denied him access to a large client.
Mr. Roffman filed a minority shareholder oppression lawsuit alleging that RMA’s management team effectively excluded Mr. Roffman from the company and devalued the stock he held. RMA offered to purchase Mr. Roffman’s shares for $1 million, an amount that was less than half of the amount which RMA had previously declared to be a “fair” price.
After Mr. Roffman commenced his minority shareholder oppression lawsuit, RMA counterclaimed, alleging a theft of trade secrets, which Mr. Roffman denied.
A month long arbitration resulted in an award of over $2 million to Mr. Roffman. RMA’s countersuit claims were dismissed.
For more information on this case or to discuss other business injury cases, call Arthur Bugay of Galfand Berger, LLP at 1-800-222-USWA (8792) or contact the firm online at [email protected]