stockholder derivative suit

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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.

stockholder derivative suit

A lawsuit filed by one or more of a company's stockholders in the name of the company. A derivative suit is filed when the firm's management will not or cannot sue in the name of the company. For example, a stockholder may enter a derivative suit against the firm's chief executive officer to recover funds from a questionable or an improper act by that officer. Also called derivative suit.
References in periodicals archive ?
The Firm also had the highest overall recovery amount, more than $900 million last year, $265 million of which is from the Massey Energy case, a shareholder suit that stemmed from the country's worst coal mine disaster in more than 40 years.
The report says prior to Rwanda, in 2006 Tanzania passed a new company Act to strengthen investor protections by codifying directors duties and shareholder suit mechanisms and providing greater access to company books.
Global Banking News-August 30, 2012--Bank of America trying to get shareholder suit dismissed(C)2012 ENPublishing - http://www.
The resulting multi-jurisdiction litigation on a single deal could amplify the risk of an adverse decision on corporate defendants because a shareholder suit heard in a state court could result in a jury trial or punitive damages.
Also significant were awards and settlements from suits litigated outside the US, particularly the $371 million settlement in the Netherlands of a shareholder suit against Royal Dutch Shell.
In one--a consolidated shareholder suit against semiconductor manufacturer Broadcom Corp.
A state court judge in Chicago reduced fees requested by plaintiff lawyers in a shareholder suit against Boeing.
Ruling on a shareholder suit that had dragged on for years, Delaware Chancellor William Chandler on August 9 determined that the Disney board did not neglect its duties when it awarded departing President Michael Ovitz a severance package worth $140 million in 1996.
When the product reaches the end of a cycle, the corporation faces a conundrum: should the firm publish information stating that the end of the product's life cycle is approaching and risk losing sales, or conceal this information and face the possibility of a shareholder suit once the product becomes obsolete?
Chandler III of the Delaware Court of Chancery ruled in the company's favor in a shareholder suit filed against Craigslist, and its majority shareholders Jim Buckmaster and Craig Newmark.
The 1999 award launched a shareholder suit claiming the awards were not in keeping with the terms outlined in the company's federal filings.
Burbank-based Disney and Eisner have been hit with a shareholder suit in Delaware over the Ovitz package, alleging Ovitz should have been fired ``for cause,'' which would have nullified the severance package.