How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 112669
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
10285032
Type Your Legal Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

80 yr dad received letter from company to buy back shares

Customer Question

80 yr dad received letter from company to buy back shares for @$6.25 - $6.50 a share. Filled out form and mailed it back 4 days before deadline. Then got phone call the day of or before deadline saying they never got the form and to send a fax allowing for the sale for what ever the company board agrees; that now got changed to about $1.35 which was only found out after the sale. He doesn't have a copy of the paper work he filled out- just the check and the paper work identifying the share transfer. The price per share was about @$6.50 on the exchange.
Submitted: 1 year ago.
Category: Legal
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
What is your question? Did he miss their deadline for obtaining that $6.50 share price?
Customer: replied 1 year ago.
He sent 4 days by (mail )before and they called him and told himm they did not receive it. This sale was not initiated by him.
Customer: replied 1 year ago.
not by phone.
Customer: replied 1 year ago.
the fax was sent in time to make the sale
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
Unfortunately, what the SEC is going to look into is the timeliness of his reply in relation to when he received the notice. If he replied in timely manner, he has to prove the date of mailing or fax. If you can prove the fax was sent in time for the higher price, they will have to honor that price, since he made it by the deadline and failure for them to pay that price would be breach of contract for which they could be sued.
Customer: replied 1 year ago.
They called him the day before the deadline - unsolicited - isn't it improper . Is that ethical ? Were they taking advantage of the elderly to pull a bait and switch?
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
No and actually it is to your favor if he got the fax in on time to get the higher price of the shares. So your argument is they called him to notify him he did not get his form in yet and he had to do so to take advantage of the $6.50 price and then despite him doing so (as you can prove when it was faxed) they still tried to pay him less. So them calling him before the due date would help his claim he is entitled to the higher share price.
Customer: replied 1 year ago.
well regardless of the deadline the stock was in a range between $6.10 -$6.60 a share during the the month the sale was made.
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

Shares must be paid in accordance with the prices set by the board. So if you are claiming that the board intentionally tanked the stock prices, you need to file your complaint to the SEC and sue the company for the proper amount due.

Related Legal Questions