practice areas

founder & partner disputes

We have a leading practice representing Founders and Partners in the resolution - through negotiation, valuation, litigation and arbitration - of disputes between and among co-founders, partners and other investors in ventures.  

We bring to bear our expertise in business advisory, valuation, commercial litigation and arbitration, employment law (including restrictive covenants) and mediation to achieve outcomes that are favorable for our clients while maximizing business value. 

Our practice includes the representation of founders and partners in start-up ventures, technology companies, investment firms (including hedge funds, private equity firms, and other investment partnerships); real estate partnerships, and medical partnerships.  Among numerous other matters, HSW: 

  • Currently represent Avi Dorfman on claims in New York State Court that he is a co-founder of real estate brokerage and technology platform Compass, which has been valued in excess of $6 Billion. Mr. Dorfman’s claims have survived summary judgment and are scheduled for trial in 2021.

  • Currently represent the Founders of FanDuel and over 170 common shareholders on claims in NY State Court that the preferred shareholders of FanDuel, in breach of their fiduciary duties, cut the common shareholders out of all economics in a merger transaction with Paddy Betfair. 

  • Won a $20 million federal jury verdict for the Learning Annex on claims they were cut out of a partnershop venture, and, after a re-trial was granted on damages, won an even larger verdict of $21.8 million against one of New York’s most prominent defense firms.

  • Resolved through negotiation significant issues regarding the valuable ownership interest of an individual minority partner in a leading hemp seed distributor.

  • Resolved through mediation, shortly after filing a complaint in Delaware, claims of a separating partner in a private equity fund. 

  • Currently Represent the Managing Partner of a $400 million health care fund in disputes with his co-founder. Successfully defeated co-founder’s application for a preliminary injunction in NY State Court, and and successfully compelled enforcement of the partnership’s arbitration clause.

  • Represented, and resolved through negotiation, the claims of two of three co-founders of a high profile social media application in a dispute with their third co-founder, following a large investment by a venture firm.

  • Negotiated, in the course of litigation, a buyout resolution of a dispute between two founders of one of Manhattan’s largest dental practices.

  • Negotiated, in the course of litigation, the division, between the founders, of a leading New York state oncological practice with multiple offices. 

  • Currently represent a $100 mm revenue privately owned company in negotiating a new operating agreement and employment agreements with its two co-founders, who are 50-50 owners.

  • Successful representation of the founder of a real estate joint venture enjoining dissipation by former partner, ultimately resulting in the negotiated recovery of the full amount of the equity investment.

  • Representation of a co-founder of a publicly traded pharmaceutical drug manufacturer specializing in psychedelic medicines and addiction therapies in a dispute arising from his departure from the company. Matter was successfully resolved through negotiation.

  • Represented the co-founder of a NY technology startup that had raised over $100 million in the valuation of his shares following his departure from the company.