Johnson v. Amtex Settlement

On August 12, 2010, Fryar Law Firm achieved a favorable settlement on behalf of a minority shareholder in a Texas government contracting and security services corporation. The case involved a unique squeeze-out scheme in which the controlling shareholders terminated the employment of minority shareholder and then paid themselves in common shares in lieu of salary, diluting the ousted shareholder's interest from almost 20% to less than 1%. The controlling shareholders then attempted a reverse stock split which would have resulted in the minority shareholder owning a fractional share and allowing the controlling shareholders to cash out his interest. Fryar Law Firm filed suit in November 2009 to prevent the squeeze-out. The settlement provides for a voluntary buy-out, the terms of which will be confidential. The client praised our efforts and results.