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Derivative Suit
(redirected from Derivative action)

   Also found in: Legal, Encyclopedia, Wikipedia 0.01 sec.
Stockholder Derivative Suit
A lawsuit filed by one or more shareholders of a publicly-traded company in the name of the company. Often, this lawsuit is filed against a member of the company's management who committed an illegal, unethical, or negligent act. Directors' and officers' liability insurance can protect the management from losses as the result of one of these lawsuits. They are also called derivative suits and derivative action.

derivative suit


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Alternatively, says the company, Computershare is seeking permission from the court to start a derivative action in the name of and on behalf of Crystallex, which would require Crystallex to bring an action against its entire board of directors.
95 Paperback KD829 This law school finals study aid consists of 100 multiple-choice and 23 essay questions on insider trading, the fiduciary duties of shareholders and directors, corporate dividends, and derivative action.
Ditech Networks (NASDAQ:DITC), a global leader in mobile voice processing solutions, today announced that it has entered into a Stipulation and Agreement of Settlement in connection with the consolidated shareholder derivative action pending in the United States District Court, Northern District of California captioned In re Ditech Networks, Inc.
 
 
 
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