---
title: "Investment Disputes, Special Situations, & Funds"
description: "Stone Hilton addresses investment disputes, special situations, and fund matters. We assess complex conflicts to restore control and protect client interests."
source_url: "https://www.stonehilton.com/practice-areas/investment-disputes-special-situations-and-funds"
canonical_path: "/practice-areas/investment-disputes-special-situations-and-funds"
content_type: "practice-area"
---

# Investment Disputes, Special Situations, & Funds

Complex investment vehicles, special situations, and fund-related matters can create friction that threatens core assets. We assess the precise mechanics of these disputes to dismantle the pressure and re-establish client control.

## Direct counsel for complex investment friction.

Our counsel, including [Noah M. Schottenstein](/team/noah-schottenstein) and [Kathryn Cherry](/team/kathryn-cherry), bring a direct approach to complex investment challenges. They focus on the specific mechanics of each matter to identify points of leverage and execute a clear path forward.

## The Special Situations Timeline.

Hostile stakeholders use the complexity of special situations to paralyze your fund. We step in to break the deadlock. By asserting total control over the legal framework, we force the opposition to abandon their strategy.

### Fiduciary Defense.

Fiduciary claims are routinely misused to freeze capital. We dismantle the strategy. Binding the opposition to the unforgiving structural realities of the fund eliminates their room to maneuver and protects the management team.

### Valuation Disputes.

Opponents challenge asset valuations to create artificial financial leverage. We eliminate the ambiguity. By forcing them to justify their metrics in the courtroom, their leverage collapses, and the portfolio's value is secured.

### Restructuring Control.

Internal conflicts are often a precursor to demanding a hostile restructuring. We assert control. By dictating the exact parameters of any reorganization, we close off vulnerabilities and secure your capital strategy.

> Internal fund disputes are designed to hijack your time and freeze your assets. Our mandate is absolute: we isolate the structural threat, enforce the governance rules, and return your complete focus to deploying capital.

Attribution: Noah Schottenstein, Partner

## Hostile stakeholders are demanding an internal investigation. How do you prevent this from becoming a fishing expedition?

Internal investigations are frequently misused by stakeholders to extract sensitive data and manufacture leverage. We take immediate control of the perimeter. We conduct clinical, legally privileged investigations that isolate the factual reality, satisfy your fiduciary obligations, and strictly contain the exposure before it triggers external litigation.

## How do you handle conflicts when the Limited Partner Advisory Committee (LPAC) attempts to block management decisions?

LPACs occasionally attempt to exceed their advisory mandate to force a shift in operational control. We intervene to enforce the structural boundaries of the partnership agreement. By restricting the committee strictly to their defined governance role, we eliminate the friction and secure the manager’s absolute authority over the portfolio.

## Do you only intervene once a lawsuit is filed, or do you advise on fund governance proactively?

Litigation is the final venue, but structural defense begins much earlier. We routinely work alongside your transactional counsel during the formation, restructuring, or winding down of a fund. We evaluate your governance mechanics through the lens of a trial attorney, closing structural vulnerabilities before a hostile stakeholder can exploit them.