You own 35% of a profitable Astoria restaurant group. For five years, distributions hit your account every quarter like clockwork. Then your managing member stopped distributing — but you notice he's driving a new Range Rover, paid off his Forest Hills mortgage, and bought a place in Montauk. When you ask for an explanation, he tells you the business needs to "retain earnings" while quietly paying himself a $400,000 "management fee" on top of his ownership share. This is one
You own 25% of a Bronx contracting LLC with two college friends. Over the past year, your managing member has been quietly routing profitable jobs to a side company he owns alone — work that should have hit your LLC's books and your distribution check. When you confronted him, he shrugged and said you're a minority member with no real power. He's wrong. An LLC derivative action in New York is exactly the tool the law gives you to sue on behalf of the company itself and force
Reza Yassi
May 19
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