Shareholder Oppression

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Shareholder Oppression

Minority shareholders deserve fair treatment and protection against actions that undermine their rights or diminish the value of their investments. When majority shareholders or corporate leadership engage in oppressive tactics—such as withholding dividends, excluding minority stakeholders from decision-making, or engaging in self-dealing—legal action may be necessary. At Wyche, we advocate for minority shareholders in disputes involving corporate misconduct, breach of fiduciary duty, and unfair business practices.

Unfair Treatment of Minority Shareholders

When majority shareholders use their control to marginalize or financially harm minority stakeholders, those affected have legal recourse. Wyche represents clients in cases where shareholder rights have been disregarded.

Common claims we handle:

Withholding Dividends or Profit Distributions
Dilution of Minority Shareholder Interests
Exclusion from Corporate Decision-Making
Unjust Removal from Company Leadership

Breach of Fiduciary Duty & Self-Dealing

Corporate officers, directors, and majority shareholders have a fiduciary duty to act in the best interests of the company and all shareholders. When they prioritize personal gain over shareholder rights, Wyche holds them accountable.

Common claims we handle:

Misuse of Corporate Funds & Assets
Fraudulent Transactions Benefiting Majority Shareholders
Unfair Stock Buybacks or Transfers
Excessive Executive Compensation & Perks

Forced Buyouts & Shareholder Squeeze-Outs

Majority shareholders sometimes attempt to force minority owners out of a business by reducing the value of their shares or implementing unfair buyout strategies. Wyche fights to ensure that shareholders receive fair compensation and treatment.

Common claims we handle:

Unfair Shareholder Buyout Offers
Stock Dilution to Reduce Minority Influence
Manipulation of Corporate Valuations
Exclusion from Corporate Records & Financial Information

Corporate Governance & Transparency Violations

Shareholders have the right to access corporate records, financial statements, and other key information. When companies fail to provide transparency or manipulate internal governance, minority shareholders can take legal action.

Common claims we handle:

Denial of Access to Financial Records
Failure to Hold Proper Board or Shareholder Meetings
Lack of Transparency in Mergers & Acquisitions
Violations of Shareholder Agreements

Derivative Lawsuits & Shareholder Remedies

When corporate wrongdoing harms a company and its shareholders, minority stakeholders may have the right to bring a derivative lawsuit on behalf of the company. Wyche has experience pursuing legal remedies to protect shareholder interests and restore corporate integrity.

Common claims we handle:

Corporate Mismanagement & Waste of Assets
Holding Directors & Officers Accountable for Wrongdoing
Seeking Injunctions to Prevent Further Harm
Demanding Fair Shareholder Compensation

If you are a minority shareholder facing unfair treatment, financial harm, or exclusion from corporate decision-making, Wyche is here to help. Our experienced attorneys advocate for shareholder rights and fight to ensure fairness in corporate governance.

REPRESENTATIVE MATTERS

Represented non-controlling owners of a nationally known real estate development company in one of the largest and most significant minority shareholder oppression lawsuits in the history of South Carolina. Litigation was settled by clients’ purchase of controlling owners’ equity interests and resale of all equity interests to third party purchaser. The business transactions resulted in the clients receiving full value for their ownership interests in the various entities.
Represented the majority but non-controlling shareholders and other attorneys in litigation resulting in the division of South Carolina’s largest plaintiffs law firm.
Represented the minority shareholder in a company formed to develop a marina on Lake Keowee. The trial court ruled that the majority had engaged in shareholder oppression, and this result was affirmed by the South Carolina Supreme Court in the first appellate decision in the state finding that shareholder oppression could occur in a start-up venture before business operations have commenced. Ballard v. Roberson, 399 S.C. 588, 733 S.E.2d 107 (2012). On remand, the trial court ordered the defendants to purchase our client’s stock for $3.7 million.
Represented minority shareholder in manufacturing business in litigation against corporation and controlling shareholders. Case settled with buy-out of client’s stock.
Tried a multi-day case for a minority shareholder in a large retail business in Bankruptcy Court, resulting in a court finding of oppression and stock purchase.
Tried a multi-day case for a minority shareholder in a large real estate business in Federal Court, resulting in a court finding of oppression and stock purchase, and prevailed on appeal to the Fourth Circuit to secure an award of attorneys’ fees.
Defended majority shareholders in a professional service business in litigation, negotiating a stock purchase and resignation of a minority shareholder.
Represented fifty percent shareholder in retail business against other shareholder who managed the business. Our client sought derivative recovery and corporate dissolution. Case settled on second day of trial with defendant giving up stock, the outcome desired by our client.

Please note: Reference to these matters should not be considered as any sort of guarantee, warranty, or prediction regarding the outcome of any other legal matter, regardless of any similarities. The outcome of a particular case cannot be predicted upon past results, as every case is different and must be evaluated separately, upon a variety of factors unique to each case. In addition, the cases listed on the web site are illustrative only, and do not represent all of the cases that the law firm or the lawyers have handled. For further information, please read our full legal disclaimer.

Matthew Richardson

Lead Contact

Matthew is a fierce advocate for clients, securing some of the most significant and groundbreaking victories in South Carolina. Recognized as one of the Top 25 Lawyers in the state by Super Lawyers, Matthew has been involved in some of South Carolina’s most complex and high-profile litigation over the past two decades. His work includes statewide consumer protection cases and a federal constitutional challenge related to temporary rate relief following the abandonment of a new nuclear power plant construction. He is a graduate of the University of South Carolina School of Law and Duke University.