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  • Over $2 Million Verdict for Shareholder Pushed-Out from Company he Started

    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]