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 two shareholder suits also allege that Intel and its company officers violated securities laws "by making statements about Intel's products and internal controls that were revealed to be false or misleading by the disclosure of the security vulnerabilities.
The class action suit is a consolidation of 13 shareholder suits filed after GTAT's disastrous deal with Apple collapsed, resulting in Merrimack-based company going bankrupt in October 2014 with $1.
97) He argues that this hierarchy of goals dilutes the social meaning of shareholder suits because compensation is a private matter whereas deterrence is a public good.
They address the economics of the firm, the role of the board of directors, state competition for corporate charters, the role of hostile takeovers and board defenses against them, the effectiveness of shareholder suits and other agency mechanisms, and other perspectives like political theory and organizational law.
D&O policies respond to shareholder suits involving financial assets of a corporation, while cyber policies pay for costs to handle the actual breach.
That certainly applies to Volkswagen, with shareholder suits already in the works.
Ultimately the Supreme Court decided that the fraud-on-the-market presumption would be upheld, however its decision now gives defendants of shareholder suits more leverage for fighting back.
Advocates of the benefit corporate form argue that it protects "social entrepreneurs" from shareholder suits by legally permitting firm managers to consider "social benefits" beyond maximizing shareholder value when making business decisions.
These are a reduction in time to start a business from 15 steps and 35 days to 8 steps and 8 days; a construction permit from 25 steps and 77 days to 14 steps and 65 days; electricity connection from 5 steps and 42 days to 4 steps and 32 days; transfer and register property from 8 steps and 39 days to 7 steps and 16 days; an increase in score on the strength of legal rights to protect borrowers and lenders from 4 to 10 out of 10; increase in scores measuring minority shareholder protection against the misconduct of a director from 2 to 7 out of 10 on disclosure, 3 to 9 out of 10 on director liability and 8 to 10 out of 10 on shareholder suits.
The results of such provisions become apparent when measuring the ease of shareholder suits within Africa.
What has upped the ante in terms of acting sooner rather than later is the recent filing of GSE shareholder suits asking the courts to release the GSEs from conservatorship immediately and restore them as private companies with their former structures intact.