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John Gorman Loses Battle for Control of Tejas Securities Group

John Gorman Loses Battle for Control of Tejas Securities Group

John Gorman Loses Battle for Control of Tejas Securities Group 150 150 Rex Securities Law

By Robert H. Rex, Esq.

On May 30,2014 Bloomberg News reported that John Gorman IV lost his attempt to regain control of Tejas Securities Group, an Austin based broker dealer that he co-founded. Link to Bloomberg story. Tejas Securities Group is a distressed-debt broker with offices in Austin and New york and grosses about $20 million a year. 
 
The case was pending in Delaware Chancery Court and Judge John Noble ruled that Gorman violated an agreement by installing a slate of directors on the board of the parent company and improperly removing an existing board member. In his ruling Judge Noble found that the seven member board now only has 4 validly elected directors, including Gorman, and that Gorman had acted in accordance with the voting-rights agreement by ousting one director and naming an ally as a replacement. 
 
This presently leaves the board deadlocked, according to Bloomberg. It’s CEO Gary Salamone and Mike Dura are on one side and Gorman and his ally T.J. Ford on the other. Ford is a retired NBA player  who played for the Milwaukee Bucks, Toronto Raptors, Indiana Pacers and the San Antonio Spurs during an 8 year career.
 
Gorman is controlling shareholder of Westech Capital Corp. , the holding company that owns Tejas Securities and has many options available to him, according to the article.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

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