LIFSHITZ LAW PLLC

SHAREHOLDER DERIVATIVE ACTIONS​

 

A shareholder derivative suit is a lawsuit instigated by a shareholder of a corporation, not on the shareholder’s own behalf but on behalf of the corporation.  The shareholder brings an action in the name of the corporation against the parties allegedly causing harm to the corporation.  Often derivative suits are brought against a corporation’s officers or directors for violations of fiduciary duties owed to the shareholders vis-à-vis the corporation.  Any proceeds of a successful action are awarded to the corporation.

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