Lee P. Fite, Individually and Derivatively on behalf of H & M Construction Co., Inc. v. Richard L. Fite, C. David Fite, Larry P. Becker, et al

This case involves allegations of breach of fiduciary duty, fraud in the inducement of a contract, and violation of the Tennessee Securities Act. The plaintiff asserts that the defendants, his two brothers who are majority shareholders in the family corporation, the corporation, as an alter ego or veil of the majority shareholders, and an officer and director of the corporation, used fraudulent expense and contract-kickback schemes to lower the book value of the corporation’s stock when plaintiff executed an option to sell agreement. The trial court granted summary judgment to the defendants. We reverse and remand.