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.

derivative suit

References in periodicals archive ?
Advertisements for participation in shareholders derivative suits have traditionally been published in the Wall Street Journal," Baker says.
OTC Bulletin Board: SKII) today announced that the United States District Court for the District of Colorado has approved a settlement of the shareholders' derivative suit pending in such court, Rasmussen, et al.
were instrumental in structuring the previously announced settlement of the stockholders' derivative suit against the Company, its board of directors and an affiliate of JW Charles Financial Services, Inc.
The California Court held it was without jurisdiction to hear an alleged shareholders' derivative suit against the directors of Loewen, a British Columbia corporation.
HP s board appointed an independent committee of directors to evaluate the claims asserted in the derivative suits and related demand letters, including claims that HP could assert against Michael Lynch, Autonomy s former chief executive officer; and Shushovan Hussain, Autonomy s former chief financial officer.
Palmer's practice is devoted to defending companies, officers and directors and audit firms in securities disputes, class actions, derivative suits, business judgment and fiduciary claims, M&A litigation, SEC matters and corporate investigations, and counseling clients regarding privilege, corporate governance, and ethics.
An experienced litigator and arbitration specialist whose practice focuses on real estate, international business transactions, corporate and partnership law, and securities, Mattioli handles a broad range of complex commercial matters, including shareholder disputes, corporate reorganizations, dissolutions, ground and commercial lease issues, brokerage and commission disputes, partnership and joint venture governance, fiduciary obligations, derivative suits, and litigation arising under the federal securities laws.
In addition to shareholder derivative suits and class action suits for board breaches of duty, exclusions from federal plans are exposures faced by health care boards.
It also includes information on derivative suits and class action suits, mutual fund litigation, mediation and arbitration, ethics, and international legal and accounting issues with pertinent law review articles.
These shareholder suits typically appear as either derivative suits brought by shareholders on behalf of corporations or as direct claims by the shareholders against the corporation and its directors and officers.
Qui Tam lawsuits are derivative suits brought by U.