Dedicated Representation
What Is a Derivative Suit?
A suit that seeks to help the corporation. If the corporate board can't or won't act to protect the corporation or pursue damages or other relief on its behalf, there are circumstances where a stockholder can step in and do this.
What Are Typical Derivative Suit Claims?
There are many types, but some recent cases have involved insider trading, excessive compensation, unfair related party transactions, and deals which unduly favor major stockholders.
What Do Stockholder Actions Cost?
Most such cases are taken on a contingent basis. This usually means that the lawyers earn no fees without success, and fees are commonly submitted to the Court for a fairness review and approval.
If I Begin a Stockholder Action, What Do I Do Next?
While the lawyers handle the day-to-day litigation, if you wish to be a class or derivative representative you owe the other stockholders a duty to be informed, diligent and look after their best interests. While not a full time job, you would need enough time to "stay on top of things" and work with counsel to make the best key decisions.