The Forced Buy-Out: Lessons From Sound Infiniti
Posted Sep 2, 2020
By Washington State Business and Real Estate Lawyer David C. Tingstad
In this week’s blog, I review the classic Washington Supreme Court decision, Sound Infiniti, Inc. v. Snyder, 169 Wn.2d 199, 237 P.3d 241 (2010), which stands for one simple proposition: majority shareholders who follow the statutory rules may successful force out the interest of a minority shareholder – even over the objection of the minority shareholder.
Dissatisfaction at the Dealership
Richard Snyder, David Hannah, and Afshin Pisheyar formed Sound Infiniti, Inc. (“Sound Infiniti”) in the early 2000s to operate an Infiniti automobile dealership. Snyder had a 30 percent share, Hannah had a 51 percent share, and...Read More