(Credit: alphaspirit/Adobe Stock) Ga. Appellate Judges Rule Conflicts of Interest in Shareholder Derivative Lawsuit as 'Speculation'
The defendant-appellees' takeaway? Become familiar with the terms of a business's operating agreement before you invest.
March 15, 2024 at 04:32 PM
4 minute read
Civil Appeals
What You Need to Know
- The court determined whether the minority shareholder should have been able to weigh in on a major financial decision is a question up to a jury.
- However, it also ruled that his claims of conflict of interest against the company's litigation committee were little more than speculation.
- Plaintiff-appellant counsel, emboldened by Judge Elizabeth Gobeil's dissent, said they are considering next steps.
The Georgia Court of Appeals released a "somewhat rare" 32-page opinion in a shareholder derivative suit, upholding the Superior Court of Gwinnett County's grant of summary judgment to the majority shareholders of an embattled LLC.
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