Two years ago, Peter Mahler wrote about a dissolution lawsuit by a female minority shareholder alleging that her male co-shareholders condoned a pattern of sexually offensive and demeaning conduct by a senior co-worker, which ultimately forced her to leave the business.
In Matter of Straka v Arcara Zucarelli Lenda & Assoc. CPAs P.C., 62 Misc 3d 1064 [Sup Ct, Erie County 2019], the court ruled that “disrespectful and unfairly disproportionate treatment of a female shareholder by the male majority in a closely held corporation constitutes oppression” and grounds to dissolve a corporation under Section 1104-a of the Business Corporation Law.
In a bizarre plot worthy of a Hollywood scriptwriter’s imagination, a court last month issued a decision in a case with a reverse fact pattern: a claim by an elderly male shareholder, Felix Glaubach (“Glaubach”), alleging that he was victimized by false allegations of sexual harassment concocted in an extortionate scheme by the company’s chief executive officer and the officer’s wife. Different branches of the same sprawling litigation have been featured on this blog twice. Continue Reading #MeToo and Business Divorce: The Flip Side