Case Details

This was a breach of fiduciary duty claim by a minority business owner against the management group of a family-owned business for alleged self-dealing and improper transfer of valuable rights to various third parties. The enterprise value of the business was in excess of $100 million with a complex ownership and corporate governance structure. One of the primary allegations related to a scheme to divert profits from the business directly to the defendants.

Funding Impact

Given the plaintiff's income stream and dividends from the business were in dispute, the minority owner did not have adequate liquid capital resources to pay for litigation related expenses and engage top tier legal representation. After initially and unsuccessfully litigating in a separate jurisdiction, LexShares' $500,000 litigation funding helped the plaintiff switch law firms. Retaining new counsel resulted in a strategic jurisdiction change.