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

Boston, MA |
Filed under: Chapter 11 bankruptcy

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

Posted

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 on Avvo. I am not your attorney and am not creating an attorney-client relationship by this post. I am therefore giving only general advice. This advice may not apply to you or your situation; may not take account of all possibilities, and may not match the advice I would give to a client. DO NOT rely on this advice or any other advice on Avvo to make your legal decisions. If you want an answer to a legal question you should retain an attorney who is licensed in your state.

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Posted

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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Posted

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.

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Posted

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!

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Posted

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 are too many factual issues and exceptions in the law to provide definitive conclusions about your circumstances.

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