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Chris Kratovil Quoted in Law360 Article on Shareholder Oppression and Fraud Case Before Texas Supreme Court

Dykema Appellate Lawyer Views Case as “Ideal Vehicle” for Texas Supreme Court to Evaluate Rights of Minority Shareholders

September 26, 2013

Christopher D. Kratovil, Dallas-based member in Dykema’s Litigation group whose practice focuses on appellate matters, is quoted in a Law360 article addressing a case currently before the Texas Supreme Court—Shagrithaya v. ARGO Data Resource Corp.—that centers on whether the company (ARGO) should pay out an $85 million dividend after a jury determined it had engaged in a series of minority shareholder oppression tactics.

Kratovil and David J. Schenck, also a Dallas-based member of Dykema’s Litigation group and former Deputy Attorney General for the State of Texas, represent Mr. Balkrishna Shagrithaya (the 47% owner and co-founder of ARGO) in this dispute.

In a Law360 article published on September 24, 2013, Kratovil states that the case is “an ideal vehicle” for the Texas Supreme Court to write a comprehensive opinion that addresses the rights of minority shareholders, as his client “helped found and build the company over three decades and owns nearly half its shares.”

Kratovil states that, while it may seem counterintuitive, the “business-friendly outcome" is for the Supreme Court to make clear that “the majority shareholder is not an absolute monarch” and that “majority shareholders shouldn’t be allowed to operate the company as a personal fiefdom.”