Hone Law

Site by GNGF

Sharp Business Litigation
(702)608-3720 Get In Touch

Las Vegas Shareholder Disputes Attorney

At Hone Law, we understand how shareholder and partnership disputes can threaten the foundation of a business. Whether the conflict stems from a breakdown in trust, financial mismanagement, or a fundamental disagreement on business direction, these disputes often combine high-stakes legal, personal, and financial concerns.

Our Las Vegas shareholder disputes attorneys offer proactive strategies and results-driven representation for business owners, shareholders, LLC members, and partners. From negotiated settlements to aggressive litigation, we work to protect your interests and preserve what you’ve built.

Common Causes of Shareholder & Partnership Disputes

Shareholders and LLC members hold critical rights within a company. When expectations are violated or roles are unclear, disputes often arise. Common causes include: 

Breach of Shareholder or Operating Agreements

Strong shareholder or operating agreements outline each party’s roles, responsibilities, and protections. When a shareholder, partner, or member violates these terms—whether by misusing company assets or acting outside of authority—it can trigger serious conflict.

Disagreements Over Company Direction

Disputes often emerge when key players disagree on strategic decisions such as major investments, hiring or firing key employees, or shifts in business operations. This is especially common in family-run companies and closely held businesses where personal relationships play a role.

Fiduciary Misconduct

Shareholders and managing partners have fiduciary duties to act in the company’s best interest. Breaches—such as self-dealing, concealment of financials, or failure to disclose conflicts of interest—can expose the individual to legal claims.

Minority Shareholder Disputes

Majority owners may dominate decision-making, leaving minority shareholders feeling excluded or unfairly treated. These disputes often center on access to information, dividend distribution, or dilution of shares.

Deadlock & Disputes Over Control

When company owners have equal voting power and cannot reach consensus, a deadlock can paralyze operations and jeopardize business health. These impasses are especially common in 50/50 ownership structures, family businesses, and startups.

At Hone Law, we help clients navigate control disputes through strategies such as:

  • Reviewing and enforcing buy-sell or tie-breaker provisions
  • Negotiating deadlock-breaking agreements
  • Petitioning the court for dissolution or the appointment of a provisional director

In cases where a resolution cannot be reached privately, our litigators are prepared to represent your interests in court to break the stalemate.

Breach of Fiduciary Duty in Partnerships & LLCs

Partnerships and LLCs require trust. When a managing partner or member fails to act in good faith or prioritizes personal gain over the business, it can damage both the company and investor confidence.

Examples of fiduciary breaches include:

  • Misappropriating company assets
  • Withholding key financial or operational information
  • Engaging in competing businesses without disclosure

If you suspect a partner or member has violated their fiduciary duties, Hone Law can help you investigate, assert your rights, and pursue damages or injunctive relief as appropriate.

Minority Shareholder Oppression Claims

Nevada law provides certain protections to minority shareholders—but enforcing those rights often requires aggressive legal action. Oppression occurs when controlling shareholders take actions that unfairly prejudice minority interests, such as:

  • Denying access to company records
  • Refusing to issue dividends without justification
  • Forcing share dilution or unfavorable buyout terms
  • Excluding minority shareholders from key decisions

Our attorneys understand how to identify and prove shareholder oppression and can pursue remedies including buyouts at fair value, injunctive relief, or damages.

Business Divorce & Buyout Disputes

Not every business relationship lasts forever. When partners or shareholders decide to part ways, the process—commonly referred to as a business divorce—can be complex and emotionally charged.

Hone Law helps clients navigate exits and buyouts involving:

  • Disputes over business valuation
  • Forensic accounting to identify hidden or misreported assets
  • Enforcing or challenging non-compete clauses
  • Structuring fair separation terms to minimize disruption

Whether you’re being forced out or initiating a departure, our team can guide you through the legal and financial aspects of your business transition.

The Hone team collaborates around a table

Strategies to Resolve Shareholder Disputes

Most shareholders hold a common goal: the desire to see the business succeed. Yet shareholder disputes can take on a life of their own, becoming destructive to business operations and sidelining the company’s objectives entirely. For this reason, achieving a swift resolution is essential.

At Hone Law, we tailor our approach based on your goals and the nature of the dispute. We pursue out-of-court solutions where possible and litigation where necessary. Our resolution strategies include:

Mediation

Mediation allows disputing parties to reach a mutually agreeable resolution with the help of a neutral third party. It’s often faster, more cost-effective, and less disruptive to the business.

Arbitration

Arbitration provides a more structured resolution process, resulting in a legally binding decision. It’s private, often faster than litigation, and can be tailored to complex business issues.

Litigation

When negotiations fail, litigation may be the only way to protect your rights and obtain relief. Our skilled trial lawyers have successfully represented clients in complex shareholder lawsuits in Nevada courts.

Why Choose Hone Law?

Unlike firms that only litigate shareholder disputes, Hone Law brings a holistic, business-first mindset to every case. Our team includes experienced business lawyers and seasoned litigators who collaborate to find the smartest strategy for your specific situation.

We pride ourselves on being:

  • Strategic and adaptive: We use litigation as one of many tools—not the only one.
  • Business-savvy: We understand the impact disputes have on your operations, reputation, and finances.
  • Client-focused: You’ll work directly with senior attorneys who are responsive, practical, and results-driven.

Speak With a Las Vegas Shareholder Disputes Attorney

Whether you’re dealing with a partnership falling apart, control issues in an LLC, or minority shareholder oppression, Hone Law is ready to protect your rights and business interests.

Contact us today to schedule a confidential consultation and learn how we can help resolve your shareholder dispute effectively and efficiently.

FAQ

What do shareholders need to prove a claim for breach of duty of loyalty?

In Nevada, corporate officers and directors owe fiduciary duties to the corporation and its shareholders. One of these pivotal fiduciary duties is the duty of loyalty. To successfully allege a breach of the duty of loyalty in Nevada, shareholders generally need to establish these elements:

  • Existence of Fiduciary Duty: Begin by establishing that the individual (typically a director or officer) indeed owed a fiduciary duty to the shareholders.
  • Breach of that Duty: Demonstrate that the director or officer acted in a manner that was not aligned with the best interests of the corporation or its shareholders. This might include actions that further their personal interests at the expense of the corporation.
  • Conflict of Interest: One of the most common manifestations of a breach of the duty of loyalty is a conflict of interest. This arises when a director or officer has a personal stake in a transaction, potentially compromising their ability to act solely in the corporation’s best interest.
  • Resulting Harm: Shareholders must show that the breach harmed the corporation. This could manifest as financial losses, damage to the corporation’s reputation, or other tangible adverse effects.
  • Absence of Fairness: In some cases where a conflict of interest is evident, the burden might shift to the accused director or officer to prove that the transaction was fair to the corporation despite the conflict.

Given the legal nuances associated with proving a breach of the duty of loyalty, company shareholders are advised to seek counsel from a Nevada attorney experienced in corporate litigation. The legal professionals at Hone Law can guide shareholders in building a case, navigating the legal landscape, and ensuring that corporate officers and directors are held accountable for their fiduciary duties.

Audit business woman working with notebook and tablet on desk.

What do shareholders need to prove a claim for breach of fiduciary duty?

In Nevada, corporate directors and officers owe fiduciary duties to both the corporation and its shareholders. When these individuals fail to act in the best interests of these parties, they can be held accountable for breaching their fiduciary duties. To establish a claim for a breach of fiduciary duty in Nevada, shareholders must establish that a fiduciary relationship existed between them and the director or officer in question. In the corporate context of Nevada, directors and officers inherently owe such duties to the corporation and its shareholders.

Shareholders also need to prove that the director or officer’s conduct deviated from the standards expected of their fiduciary role. This could involve actions that were negligent, self-serving, or in some other way not in line with the best interests of the corporation and its shareholders. Ultimately, it is important to show a link between the breach of duty and harm caused. Shareholders must demonstrate that the director or officer’s breach directly led to damages or adverse effects on the corporation or its shareholders.

In the end, the fiduciary breach must have caused quantifiable harm to either the corporation or its shareholders. This could be in the form of financial losses, diminished stock value, reputational damage, or other tangible setbacks.

Nevada recognizes both the duty of loyalty and the duty of care as core fiduciary duties. Therefore, a breach might arise from conflicts of interest, failure to act in good faith, negligence, or failing to exercise reasonable care in decision-making.

Given the complexities of corporate litigation, to protect their legal rights, shareholders in Nevada should consider visiting with an experienced shareholder disputes attorney when alleging a breach of fiduciary duty. The experienced team of legal professionals at Hone Law can provide invaluable guidance in articulating the claim, ensuring all elements are addressed, and representing shareholders’ best interests throughout the process.

person looking at phone

Helpful Links

Business Litigation Contract Disputes Intellectual Property Construction Litigation