Court of Appeals Affirms Finding of Shareholder Oppression and Stock Buy-Back Remedy

Brett Kutnick was the principal author of the appellate briefs in a well-publicized case involving shareholder oppression in which the Court of Appeals for the Fifth District of Texas upheld a judgment in favor of the firm’s client, Ann Rupe, based on the jury’s finding that she had been oppressed by the officers and directors of Rupe Investment Corporation.  The court of appeals also upheld the trial court’s order requiring the defendants to buy back Ms. Rupe’s stock as an equitable remedy for their misconduct, but remanded the case for further proceedings to determine the fair market value of the stock.  Ritchie v. Rupe, 339 S.W.3d 275 (Tex. App.—Dallas 2011), rev’d, 443 S.W.3d 856 (Tex. 2014).