Minority shareholders of a publicly traded corporation often are at a disadvantage during a proposed buyout of the company. Although the board of directors & management of the company you have invested in have a fiduciary duty to work for the best interests of the shareholders, there are times when the interests of management and the board may diverge from the interests of the public shareholders. For example, the board may have agreed to sell the company to a particular buyer at an unfair price offer because of various incentives that such buyer may have offered members of the board or management. The company may also fail to disclose material information regarding the proposed merger without which public shareholder will be unable to make an informed decision regarding the transaction. In such situations, a class action lawsuit may be the best way for the public shareholders to be heard so that they can get all the information they need and obtain the best possible price for their shares.
The Law Offices of Vincent Wong have significant experience in protecting shareholder rights. Contact a class action attorney for a free consultation regarding any questions you may have about a merger or other circumstance that has impacted your portfolio.