shareholder derivative suit

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.

shareholder derivative suit

A special type of class action lawsuit filed by one shareholder or by a limited number of shareholders on behalf of all of the other shareholders in a firm. An example is such a suit filed against a mutual fund's management in which the litigants claim excessive management and distribution fees.
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Goodwin Litigators Secure Second Circuit Win for Mutual Fund Trustees in Shareholder Derivative Suit
Baker once represented a Park City resident in a shareholder derivative suit against a major company.
the case of a shareholder derivative suit, lead plaintiffs may not have
has filed a shareholder derivative suit Monday, January 26, against Marvel Entertainment and its chairman Isaac Perlmutter, as well as Stan Lee, the creator of Marvel's major superhero characters and former Marvel Studio head, Avi Arad.
To address the analogous problem in the for-profit context, Delaware courts have required a stringent set of conditions to obtain before a shareholder derivative suit may survive the board's motion to dismiss.
While such cases rarely go to trial, the Delaware chancery court permitted a shareholder derivative suit alleging a breach of fiduciary responsibility against Disney's board to proceed.
The Board has appointed a Special Litigation Committee to investigate the claims in the shareholder derivative suit recently brought against certain of the Company's former and current officers and directors and make a recommendation as to whether it is in the best interests of the Company to pursue, dismiss or consensually resolve the claims.
is pleased to announce that the shareholder derivative suit brought against the Company prior to last year's Presidential election, relating to the Company's decision to air portions of the documentary "Stolen Honor," was voluntarily dismissed and the litigation has now ended.
As part of its effort for change at Ronson, Steel Partners is continuing to aggressively pursue a shareholder derivative suit against Ronson's Board of Directors claiming various breaches of fiduciary duty.
Halliburton and plaintiffs' representatives have signed a memorandum of understanding to settle approximately twenty shareholder class action securities cases that have been consolidated before a federal court in Dallas, Texas, and a shareholder derivative suit pending in the same federal court.
STAAR Surgical Company today reported that the Court of Chancery of the State of Delaware has dismissed a shareholder derivative suit naming STAAR Surgical Company as a nominal defendant filed in December 2000 by Mario Pelegrina.
As previously announced, the Company and certain of its current and former officers are currently defendants in three class action securities lawsuits, and one shareholder derivative suit.