Individual investors in a Boston biosciences company that has filed for Chap 11. Would like to discuss our shareholder rights.

Asked over 1 year ago - Boston, MA

We are investigating if management upheld its fiduciary duty to shareholders by going after the best possible deal available or in building value in the corp? We are of the opinion that management violated "fair dealing" laws and it was "self dealing" amongst note holders who were also VC equity holders who also were board members who also had sway on who was management and what role that management would play.

Our focus now is centered around the naked shorting of the company's stock. What happened to the millions of phantom shares? Who sold them short and failed to deliver? Somebody profited. Was management colluding?

In order to preserve our claims before any applicable statutes of limitations expire, we need to act quickly.

Thank you.

Attorney answers (5)

  1. Erik Hammarlund

    Contributor Level 18

    1

    Lawyer agrees

    Answered . You (and possibly other shareholders) need to get an attorney ASAP, preferably one who is familiar with both bankruptcy suits and also corporate law. You will want to act immediately: based on your description there is a possibility that you will want to sue one or more officers or directors on a personal basis, and you may need to take prompt steps to secure your assets.

    Because it is in bankrupcty there is an automatic stay, and that is yet another reason to get counsel. pro se parties can get in a lot of trouble when bankruptcy is involved, because stay violations are expensive.

    Do you want accurate, personalized, legal advice that you can rely on? You will have to hire an attorney, not ask... more
  2. Herbert Weinberg

    Pro

    Contributor Level 12

    Answered . What is the question for a bankruptcy lawyer? I see complex securities questions and I can give you the name of good securities lawyers who may be able to help you.

  3. Brian Lipkin

    Contributor Level 8

    Answered . You, and the other shareholders, should speak with a lawyer right away. With more facts, your lawyer can investigate whether management breached its fiduciary duty to you. My firm handles securities matters. If you have any more specific questions, please feel free to post them here. Good luck!

  4. Alan S Dambrov

    Contributor Level 13

    Answered . Think about calling Stephen Richmond, (781) 235-9600. He has experience in these types of matters.

    This response is intended to give a general overview of the law and should not be treated as legal advice. There... more
  5. Scott Benjamin Riddle

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . Do you have a question? If you need to act quickly, you should be contacting lawyers who handle these matters. Obviously, your issues are nothing to be addressed on a website like this.

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