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

Updated October 22, 2026 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. That work 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 the tool the law gives you to sue on behalf of the company i