Legal Question in Business Law in Washington

LLC Investment? Dissolution? Corporation Switc

In 2002 I invested into an LLC. I am not an accredited investor and was also only 19 at the time.

Months after I invested into the LLC, it was dissolved by the founders without my knowledge (their operating agreement had a section where they could do this under certain circumstances). They never offered me my money back and never explained what happened.

I continued to work with them and ride along. In 2005 they issued me stock in another one of their companies to cover my investment that was supposed to be in the LLC. I never signed anything and to this day was never notified on meetings or given notice or info on anything.

The reason I continued on was because the founders were good at conning and making outlandish promises about how they would pay me large sums of money.

Now they are selling their company that they gave me stock in. I am looking to get less than I invested and they are not going to repay me for my time and debt, even though they will be making out.

Over the years if people tried to get info from them, they would threaten to bankrupt or not pay the large sums the promised. They treated all minority shareholders horribly and never ran their business properly.

I am trying see if I have a case.


Asked on 8/26/08, 1:06 am

1 Answer from Attorneys
Susan Beecher Susan L. Beecher, Atty at Law

Re: LLC Investment? Dissolution? Corporation Switc

You may very well have a case, based on the facts presented here. The battle cry of lawyers is "that depends", because so much depends on the little details. Pull together every scrap of paper you have about these various transactions, including notes you may have kept to remind yourself of what happened, then go and sit down with an attorney and go over what you have. The purpose of an initial consultation is just simply to see whether you have a case, and whether you and the attorney will work well together. Therefore, many attorneys do not charge for this initial meeting, or charge a very small fee.

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Answered on 8/26/08, 10:00 am


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