A prominent local fact checking website is involved in a complex shareholder and breach of contract dispute.  The Watkins Firm has decades of experience in both breach of contract cases and shareholder disputes.  The case in question is not unusual and these cases require legal expertise, skill and experience to obtain a positive outcome.

The website in question was the community property of a husband and wife who divorced.  The wife sold her 50% stake in the company which owned the website to an outside company who managed advertising for the website.  There were five partners in the advertising company at that time.  Two of these partners received a 20% interest in the website’s holding company, while the other three received 3.33% interests.

The husband who retained his 50% interest subsequently fired the advertising company who had purchased the wife’s 50% interest.  The owners of the advertising company asserted they had an equal interest in the site and could not be terminated.  They withheld advertising revenues from the site and ultimately sued the holding company of the website and the husband personally for breach of contract and to be recognized as 50% owners of the holding company.  The husband asserts that each of the five individuals are minority interests, and as such do not have the power or control to prevent the firing of their company as the websites advertising manager.

This complex shareholder and breach of contract dispute will in all likelihood continue for quite some time as there are substantial legal issues in dispute and a substantial amount of money at stake.  The Watkins Firm has a strong track record at trial and in settling cases involving shareholder disputes, questions of shareholder’s rights, derivative lawsuits and breach of contract.  If you are concerned about shareholder’s rights or a breach of contract we invite you to contact us or call 858-535-1511 for a free consultation.