Shareholder Investment Fraud Lawsuits, Minority Shareholder Investment Fraud Lawsuits, Accredited Investor Investment Fraud Lawsuits, Shareholder Suppression Lawsuits, and Business Misrepresentation Lawsuits

Shareholder Investment Fraud Lawsuits, Minority Shareholder Investment Fraud Lawsuits, Accredited Investor Investment Fraud Lawsuits, Shareholder Suppression Lawsuits, and Business Misrepresentation Lawsuits
by Texas Shareholder Investment Fraud Lawyer Jason S. Coomer

Business fraud and negligent misrepresentation cost investors, shareholders, and  businesses and individuals Billions of Dollars each year.  Shareholder investment fraud lawsuits, minority shareholder lawsuits, shareholder suppression lawsuits, and other business misrepresentation and fraud lawsuits allow investors and shareholders to seek back large sums of money that have been wrongfully taken from them.

  

Shareholder Investment Fraud Lawsuits, Minority Shareholder Investment Fraud Lawsuits, Accredited Investor Investment Fraud Lawsuits, Shareholder Suppression Lawsuits, and Business Misrepresentation Lawsuits

Since the 1980s, the deregulation of investment markets and decreased SEC enforcement, have come large investor fraud schemes that have fraudulently taken Billions of dollars from consumer and business investors.  Many businesses have set up elaborate investment scams that have taken advantage of high end investors, accredited investors, business investors, and individual investors. 

During this era of deregulation many safe guards were removed, but even more rules and safe guards were not adhered to when these fraudulent businesses lured investors into fraudulent and risky investments.  Understanding SEC rules on what should have been disclosed during investment negotiations as well as who may be a potential defendant for failing to properly disclose necessary information or intentionally misleading investors about an investment are crucial in determining if a shareholder or investor has a viable shareholder investment fraud lawsuit, minority shareholder lawsuit, shareholder suppression lawsuit, or other business misrepresentation and fraud lawsuit.

Further, in determining who is a viable defendant for a potential shareholder investment fraud lawsuit, minority shareholder lawsuit, shareholder suppression lawsuit, or other business misrepresentation and fraud lawsuit, it is important to understand the fiduciary duties owed by corporate officers, the board of directors, investment firms, brokers, financial planners, real estate professionals, lawyers, and other business professionals.  Understanding these duties can often help determine if there is a viable party to seek compensation from after a large investment was lost or stolen.

Shareholder Suppression Lawsuits, Corporate Malfeasance Lawsuits, Breach of Fiduciary Duty Lawsuits, and Shareholder Actions Lawsuits

Unfortunately, majority shareholders sometimes wrongfully and fraudulently use their controlling interest in a company for their own benefit at the expense of minority shareholders.  When a majority shareholder uses corporate malfeasance and breach of fiduciary duties, the minority shareholder may have a viable shareholder suppression lawsuit against the majority shareholders.  

In any Shareholder Suppression Lawsuit, Corporate Malfeasance Lawsuit, or Breach of Fiduciary Duty Lawsuit, it is important to understand the rights, fiduciary duties, and responsibilities of the majority shareholders, board of directors, managing partners, corporate officers, corporate counsel, chief financial officers, and managers.  It is also important to obtain as much evidence of the malfeasance, self dealing, fraud against shareholders, wrongful suppression, embezzlement, or other bad acts as possible prior to the start of litigation.  In many of these cases, once litigation has begun, obtaining evidence of the unlawful and bad acts are difficult and heated battles as many documents begin to disappear and proving spoliation becomes a key issue.  The term spoliation broadly refers to the intentional, reckless, or negligent destruction, loss, material alteration or obstruction of evidence that is relevant to litigation.

 Texas Negligent Misrepresentation Lawsuits and Texas Fraudulent Misrepresentation Lawsuits

Texas has business tort laws against both fraudulent and negligent misrepresentation that can be brought against businesses and individuals that make misrepresentations that cause significant damages.  Under Texas negligent misrepresentation law, a business or individual "who, in the course of his business, profession or employment, or in any transaction in which he has a pecuniary interest, supplies false information for the guidance of others in their business transactions, is subject to liability for pecuniary loss caused to them by their justifiable reliance upon the information, if he fails to exercise reasonable care or competence in obtaining or communicating the information."  described by the Restatement (Second) of Torts Sec. 522. See Federal Land Bank Ass’n of Tyler v. Sloane, 825 S.W.2d 439, 442 (Tex. 1991).

In moving forward on a Texas Fraudulent or Negligent Misrepresentation Lawsuit against a corporation, partnership, limited liability company, professional corporation, individual or other business, it is important to have an experienced business litigation lawyer or business litigation team that is able to review and prosecute your Texas Misrepresentation Lawsuit.

 Accredited Investor Fraud Lawsuits, Federal Investment Fraud Lawsuits, Texas Investment Fraud Lawsuits, Shareholder Investor Lawsuits, and Business Misrepresentation Lawsuits

Accredited Investors are commonly the targets of investment fraud schemes.  This is because under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. The Act provides companies with a number of exemptions. For some of the exemptions, such as rules 505 and 506 of Regulation D, a company may sell its securities to what are known as "accredited investors."

By targeting Accredited Investors, some companies and their lawyers are able to exempt themselves from disclosure rules.  When investing as an accredited investor, it is often a good idea to have an attorney assist you prior to making a substantial investment.  Additionally, if you have already made a substantial investment and suspect foul play, it is important to make sure that you are aware of your rights and how to seek information on your investment.

 

Texas Shareholder Investment Fraud Lawsuits, Texsa Minority Shareholder Investment Fraud Lawsuits, Texas Accredited Investor Investment Fraud Lawsuits, Texas Shareholder Suppression Lawsuits, Texas Business Fraud Litigation Lawsuits, Texas Business Fraud Lawsuits, and Texas Business Fraud Litigation Teams

For more information on Texas Shareholder Investment Fraud Lawsuits, Texsa Minority Shareholder Investment Fraud Lawsuits, Texas Accredited Investor Investment Fraud Lawsuits, Texas Shareholder Suppression Lawsuits, Texas Business Fraud Litigation Lawsuits, Texas Business Fraud Lawsuits, and Texas Business Fraud Litigation Teams, please feel free to go to the following web page on Shareholder Investment Fraud Lawsuits, Minority Shareholder Investment Fraud Lawsuits, Accredited Investor Investment Fraud Lawsuits, Shareholder Suppression Lawsuits, and Texas Business Fraud Litigation.