“Derivative suit” is the term for legal action filed by the shareholder of a company to address any harms or wrongs done to the company. A derivative lawsuit is generally filed on behalf of the company against executives or board members.
Typically, directors of a company are responsible for pursuing legal action when the company has come to harm. However, if the board of a company failed to address the wrongful action, you, as a shareholder, could step in and file a derivative lawsuit. It is important to note that only shareholders of a company can file derivative lawsuits.
If you are an investor and find that there is willful mismanagement, insider dealing, or other wrongful acts impacting the company, you could take action. Our experienced business litigation attorneys can help. Contact us now, and we will evaluate your case for free.
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