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Wolfspeed, Durham-Based Semiconductor Producer, Fighting Financial Peril in the Market and Employee Exits in the Courts

Wolfspeed, a Durham-based silicon carbide semiconductor business, has plenty on its plate these days amid media reports of an impending bankruptcy reorganization. While such a filing would be aimed at a short(ish) judicial...more

A Tax(ing) Return: Sale of Prep Franchises Fails and Remaining Assets Come Back

In a dispute about tax preparation businesses that one member of Compass Tax Services LLC was selling to the entity, precious little was for certain. Even the parties’ agreement lacked clarity about whether Compass Tax, or...more

JNOV is a Tough Road, but it’s Not a One in a Million Shot

A party seeking to unseat a verdict by JNOV “bears a heavy burden under North Carolina law.” Only a “scintilla of evidence” is needed to support the elements of the prevailing claim. But as the Business Court reminded in...more

In Planning a Law Firm Exit, Business Court Commends Attention to the Things that Go Unspoken

A Charlotte area law firm alleged it struck a necessary, and rather ordinary, deal with departing partners to divide fees on contingent cases transitioning among firms based on time expended by each, with an included true up...more

Corporate Director Duty to at Least “Try” to Carry Out Oversight Functions May Soon Extend to Company Officers

Just last year, in assessing the extent to which a director has a duty to oversee a corporation’s business affairs, the Business Court noted the “limited guidance” afforded by state statutes and case law. In Lee v. McDowell,...more

Who Holds an LLC’s “Cards”?

Mary Hartsell is a nurse practitioner who joined Mindpath Care Centers, North Carolina, PLLC in April 2001 as a member, minority interest holder, and employee. Mindpath provides mental and behavioral care in North Carolina,...more

Sex Toy Titan Sues Estate of Founder to Compel Redemption of Shares Whose Value May Exceed $60 Million

When Philip Harvey died in December 2021 he owned more than 400 shares of common capital stock in PHE, Inc., a Hillsborough, North Carolina-based business that sells sexual wellness products and sex toys through a website and...more

Patient’s Second “Injury” – Billing for Medical Care

Charles McNew was injured in a fall at his home in June 2021, and subsequently treated at the Fletcher Hospital emergency room in Hendersonville, North Carolina. Three months later he claims to have suffered an injury of a...more

Minority Shareholders can “Follow the Money” Linked To Alleged Diversions by Majority for Phantom Salaries and Benefits

The minority shareholders of a podiatry practice felt like they had been kicked around by the alleged financial misadventures of two colleagues who together controlled an 80 percent interest....more

No Harm, No Foul

Longtime college basketball commentator Billy Packer is credited with one of the better Yogi Berra-isms in NCAA hoops lore: “This is going to be a long three minutes here.” And that’s about how long it took for litigation...more

In A Church Divided, Secular Courts Have Limited Tools To Rejoin What A Congregation Has Put Asunder

Discord within a faith community comes with all the challenges of a secular dispute, but carries with it the special responsibility that members of a congregation share in a collective spiritual undertaking. Yet, there are...more

N.C. Business Court Declines To Adopt Rule That A Minority Shareholder Exercising “Actual Control” Could Have Fiduciary Duty To...

The Business Court sorted through the drama of an affiliated outsider who wanted to buy a company, settled for half and became an insider, and then allegedly used that perch to benefit himself and his family in W. Avalon...more

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