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Fighting for shareholder rights ~ capitalism works when investors are treated fairly

On Behalf of | Aug 17, 2022 | Firm News |

Are you an investor in a small business, but the majority of shareholders are squeezing you out in a merger?  Are your shares getting valued artificially low?

The Michigan Supreme Court just expanded your rights in Murphy v Inman, 2022 WL 1020127 (April 2022).  In this case, the Court unanimously found that shareholders can bring suit under the “common law” as well as under the statute MCL 450.1541(a).

Historically, Michigan’s laws passed by the legislature did not provide sufficient rights for corporate shareholders whose shares were cashed out at a low level due to transactions that were not handled fairly by the board of directors.

Under the new rule adopted by the State Supreme Court, directors owe shareholders common law fiduciary duties.

For the first time, shareholders in this circumstance can sue directly and not simply as part of a “derivative lawsuit.”

Capitalism only works when investors are treated fairly.  We have been fighting for shareholder rights for years.  Now we have a new tool.