In November 2000, the ULLICO board members allegedly authorized the repurchase of the stock they had bought in 1999, at a nearly 100 percent profit, NRTW complained. Other shareholders, however, were allowed to sell only a small part of their holdings.
that is the way it goes with a privately held company. They usually have the “right of first refusal.” If they refuse to buy the shares you are generally out of luck. They can agree to buy some shares and refuse to buy others. They can refuse to buy back more than a certain percentage of your shares, and they can refuse to buy back any shares if they want. All perfectly legal from what I’ve seen.
You can sell them to your brother-in-law if you want but he won’t be able to unload them, etc. It’s just part of buying into a non-publicly traded company, IMO.
ULLICO shares had dropped to $74 in the spring of 2001, when NRTW alleges the company allowed the holders of union pension funds invested in ULLICO, to sell their shares.
Which is interesting and may be nefarious in some way but they have it within their power to do. At least I’ve seen it done and it continues today and NRTW has never demonstrated any successful suits in this area from what I can remember.
"These guys got rich, basically, off the workers they're supposed to be protecting,"
And IBT pensioners financed Las Vegas, often receiving a small percentage – if anything - of the amount contributed on their behalf to the fund… we know, we know. That’s where the Organized Crime aspect comes into play.
"Saying these guys are the guardians against corporate greed is like having Bobby Knight run an anger management class,"
Well, there is that. It is interesting that if you are the victim of union violence you will most likely (like in excess of 90% of the time) be a fellow union “brother.” I read that somewhere last year. It follows that there may be other issues... IMO, of course.