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 ?
So a D&O policy that can respond to a shareholder suit that may arise from a cybersecurity event is very important to have in place.
The scandal has led to a civil shareholder suit, with Avon Pension Fund as lead plaintiff, alleging that News Corp.
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.
In May, a judge said HP must face the shareholder suit.
Global Banking News-August 30, 2012--Bank of America trying to get shareholder suit dismissed(C)2012 ENPublishing - http://www.
EMC spokesman Patrick Cooley said the company plans to vigorously fight the shareholder suit and the government allegations.
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.
and interfered with their ability to do business, which led to its bankruptcy - was also named in a recent shareholder suit claiming officials refused to comply with applicable environmental, labor, and securities laws.
The case shares some parallels with another minority shareholder suit that resulted in an improved sales price.