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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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The shareholder derivative suit, filed by shareholder John G.
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(5.) See, e.g., John Matheson, Restoring the Promise of the Shareholder Derivative Suit, 50 GA.
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The appointment of the committee --again a common defense strategy in shareholder derivative suit cases--resulted in a lengthy "stay" of the litigation, which remains pending as of this writing.
You've been hacked, and now you're being sued: the developing world of cybersecurity litigation
Once Wal-Mart's bribery scandal made headlines, the California State Teachers Retirement System (CalSTRS), concerned that Wal-Mart's bribery practices and the corresponding potential for hefty penalties would negatively impact its substantial holdings in Wal-Mart, filed a shareholder derivative suit against Wal-Mart's board in the Delaware Court of Chancery.
Following on the Foreign Corrupt Practices Act: the dynamic shareholder derivative suit
767, 783 (1999) [hereinafter West, Information, Institutions, and Extortion] (commenting that investors only recently began using the shareholder derivative suit as a result of the 1993 Commercial Code amendment that reduced filing fees).
Japan's love for derivative actions: irrational behavior and non-economic motives as rational explanations for shareholder litigation
Baker once represented a Park City resident in a shareholder derivative suit against a major company.
When a company crashes: what rights do shareholders have?
Garth et al., Empirical Research and the Shareholder Derivative Suit: Toward a Better Informed Debate, 48 LAW & CONTEMP.
Corporate governance in the courtroom: an empirical analysis
Similarly, in Wittenborn v Pauly, the Northern District stated as follows: "[W]here the court faced a disqualification motion in the context of a shareholder derivative suit, the potential for conflict was enough to justify requiring the corporate defendant to retain independent counsel." (15)
When can you defend both a corporation and its officers? When corporations and their officers are jointly sued, they often turn to their existing corporate litigation counsel for representation. But clients and attorneys alike should carefully consider whether a conflict of interest precludes joint representation
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.
Student derivative lawsuits
This shareholder derivative suit claimed that certain officers and directors of the corporation violated their fiduciary duties by participating in insider trading.
Recent developments in director liability

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